There are very few items that you would have to address on an annual basis.

2) Why do you not assume any annual expense increase?

I would start by offering 1x the annual net but there are still plenty of other factors to consider.

We see around 3% annually, which is just enough to cover increases in insurance and taxes.

Stats:3/2 w/176K mortgage$1,750 payment25 yrs. leftChuncking 12K annual via HELOCMy goal is to pay it off in 6 years.Should I recast my loan?

The leases in both units are below market by varying degrees - the annual gross rent on the one is about $3k more than the other.

A typical range would be 11-16% annual projections (tax-advantaged, which is critical).

While taxes are higher this year than last, there are a number of POSITIVE factors (rent rate, vacancy rate, and turn over rate) that offset that very predictable annual expense.That said, I endorse DSM for investing overall but it comes down to your individual investing strategy.

This will leave you with $2,040 in annual free cash to cover repairs, maintenance, vacancies and other variables you may encounter.   

I would love to get opinions/feedback from the forum.My take: In long-term rentals you are selling accommodations. So prior rental rates are a very valid projection of what the market can bear. In vacation rentals you...