Great way to pick up some good info and possibly a deal.I have listed below some Rules of Thumb we use.Good luckPaulExpensesTaxes  (80% Purchase Price) x (Mill rate) = TaxesInsurance $250 per door (this could be higher, depending on if property is closer to coast, the claim history, if in flood zone, etc)Repairs & Maintenance (R&M)  $300–$600 per door Contractors and material, Carpet Cleaning, Keys and Locksets, Make ReadyGeneral Administration  $100-250 per doorManagement Fees Typically 4% of Total Income for larger propertiesMarketing/Advertising $100 per doorUtilities Take historical from last year, annualize this year’s, compare & then take the higher of the two. 

However, if I was to make a $10,000.00 annual principal payment( that I will be saving from the $1,590 surplus) I could have this free and clear in 7.5 years. 

- I presume it would be fraud for them to use their annual exclusion gifts to give us the cash, and then for us to use our annual exclusion gifts to "gift" back an amount equal to net income and then to "gift" back an amount equal to their share when the property is sold in the future ?

That amount is 50% of my annual rent.

A modern, direct-vented, condensing hot-water heater will have an annual fuel utilization efficiency (AFUE) rating  >90.   

At which point the equity I will have amounted (est 7%) will atleast cover nearly all closing cost if I were to sell the home at the same price I purchased it for, leaving me with just my cash flow earnings and a nice 8-10% annual return.

There are 4 people at the board, 3 of 4 are people working for the investor's company.A few months ago, after the annual board meeting, the board propose and approve a special assessment for $2200 of each unit. (3 out of 4 people voted). 

And one Four Unit for $55k (current debt FHA 203 loan -  $86k) now netting $28.5k in rents before debt service.So consolidated holdings are $110k in debt (no prepayment penalties with either) and netting $40k annually before debt service. 

Cap Rate 8.5%Cash on Cash Return: 16.9%20% DownCash flow about 2700 annually

The S&P500 historically returns like 8% annually.