The numbers were crazy good. 2.5% rule!

Cap rate is around 6.5%, based upon my calculationsThe 1% rule has not been met as 6,000/800,000 = .75% but as I mentioned, I am receiving a little less now due to living in the place for the year. 

That rule is with every deal now! 

Like that 80/20 rule of thumb.Thank you!

There are revenue rulings about whether or not a remainderman interest is like-kind to other interest types.

They will usually keep it in portfolio rather than go by Fannie rules.

And then to prove their power they threaten you with penalties because now your old paint has faded and is not in compliance with the approved colors, or it is peeling or whatever.The POA is controlled by folks that moved here from NY, east coast, etc, not locals and they have let their position go to their heads, plus they really like rules to control others.

And the large complexes can actually be easier to manage because their size can often justify a dedicated maintenance person.    

And I am small time(for now) I work out average rents by street and building and what improvements that might be justified by additional rent.

You can avoid payroll by ensuring your structure your agreement with them such that they are a 1099 sub contractor NOT an employee (bes ure to get smart and play by all the rules!).