Folks are encouraging me to seek private investors to help me with a deal.  This would be the first time I have approached anyone that isn't a big bank, so I'm unsure if what I am offering is enough to whet the appetite of someone with Bigger Pockets than me.  I'd appreciate some pointers from anybody that has worked a deal with a private investor to tell me what they'd do/offer differently. So, what I've put together below are some of the numbers I'm thinking.  I used 15% (simple) because it represents a "middle of the road" return compared to the volatile S&P 500 index over the last 5 years.

Would this tickle your investor's interest?  If not, why not?  

What are you considering in your expenses? What is your "annual set-aside" for?

You don't say anything about the property so I don't know how to help you. Is this an apartment complex? Strip mall? Trailer park?

You can generally expect operating expenses to be closer to 50% of the income. You're calculating $89,000 in expenses which is only 5%. Either this is a very, very well-run operation or you're missing some expenses.

Originally posted by @Nathan G.:

What are you considering in your expenses? What is your "annual set-aside" for?

You don't say anything about the property so I don't know how to help you. Is this an apartment complex? Strip mall? Trailer park?

You can generally expect operating expenses to be closer to 50% of the income. You're calculating $89,000 in expenses which is only 5%. Even if I combine your expenses and debt service, that's only 10% of income. Either this is a very, very well-run operation or you're missing some expenses.

@Nathan G. , good questions and my properties also tend to be 50%.  Here is what I have, as per a flyer:

Contract work:  18228

Lawn care: 4500

Taxes: 30,189

Trash: 4,410

Utilities: 15,231

Insurance: 4,750

Maintenance: 12,000

Reserves for replacements like roof: $12,000

What about vacancies? Property management? 

As a rule of thumb, insurance is usually around 1% of purchase price. That's almost 4x what you show.

$12,000 for maintenance? 5% of purchase price would be conservative, which is $85,000 per year and 7x what you show.

Something doesn't smell right.