Even then you need reserves to get you through those rough spots of vacancy, maintenance, cap ex expenditures, and the recent inability to evict.

@Mike Trzaska, when you calculate your cash-flow are you budgeting for vacancy, maintenance, and cap ex?

The inherited rent rates cover the hard operating expenses plus a little bit of cash that gets set aside for future maintenance/capex reserves, but no profit and not as much set aside for reserves as I'd like.The plan was always to give the inherited tenants reasonable notice to vacate (they are on month to month leases), renovate the units, and rent back out at market rate. 

Purchase price: $110,000 Cash invested: $37,000Investment 01After analyzing the property and the market I took the leap and purchased myself. 30% Down - 2.99% Rate - 15 year - Market Rental Rate - $1595 per monthCondo HOA Includes Trash, Water, Sewer, Outside Maintenance, Parking, Pool, ClubhouseMinimal repairs needed and immediate cashflow the days after closing.Next investment goals will be in Orlando, Florida & Puerto Rico.What made you interested in investing in this type of deal?

However, prior to signing the applicant came back with a list of requests such as maintenance using battery operated tools due to utility cost concerns, installing motion detectors, rental insurance not covering fires, tree falling ?!????

My reason for buying new multiplex is I want to spend less time on maintenance and let my investment sit for 5-7 years.

With his old age he unfortunately failed to keep up with building maintenance and rented the units for $425 a month.

Their max payment is $650 so the rest (taxes, maintenance) would be on me to cover. 

Hey @Andrew Graham,I would ask your relator to help you with your numbers you use for vacancy in the area, maintenance can vary by house depending on what items that need upkeep, the year the house was built and so on.

They are seriously overpriced for the condition and need alot of maintenance.