The way I figured the cash flow was by breaking down reoccuring expenses and totaling up (taxes, ins, maint, debt service, vacancy, staff, utilities, etc, etc). It worked out to 72k NOI. I then applied the 50% rule and it came out to 75k NOI. So I am thinking to be realistic I can count on no less than 50k especially during the first couple years of operation. Still seems like a damn good investment.
I have worked for GC's and Developers for years and would manage these aspects myself. My wife is a property manager so that aspect would be covered while I concentrate on the rehab.
My plan would be to charge "myself" GC fees which would give me a cash reserve prior to ever having my first tenant. ($400k budget, 15% GC fee = 60k for reserves)
The aspect of the business that I dont know is aquisition, which is why I am here. So do you think that if I put toghether a good business plan and show that the money works out I might be able to attract some HMLs with no skin in the game in this lending enviroment?