I was chatting with some of my lending buddies at big banks and they are all backing away from the CRE space including office because operating costs are increasing more quickly than rents.

Assume break even cash flow while rented which includes a generous $600/mo repair fund. 

These typically include services like renters insurance, HVAC filter delivery, pest control, and sometimes utility management.

@Robert Spiegel Great question, and it’s always a balancing act when dealing with long-term tenants who’ve been fantastic overall.Based on my experience managing over 1,200 rental homes in North Texas, including areas like Dallas, Fort Worth, Plano, and Frisco, here’s how I would approach this:Cleaning Charge: While $540 may feel steep, it can vary depending on the size of the property and local market rates.

You want an investment that pays for itself, including mortgage, taxes, insurance, maintenance, and even some money set aside for a reserve to cover vacancies and capital expenditures.

What the gurus don't tell you is that they are comparing market rents to the GROSS amount of S8 rent on a voucher which INCLUDES LANDORD PAID UTILITIES!

They allow you to include up to 6 months of rent payments in the loan if you are unable to occupy the premises during the renovation.Just to be complete, it's also worth mentioning that both the VA and USDA have renovation loans.

The deal sounded good at the beginning but thought it included his fee and it didn't so he's tacking on his 20% on every bill. 

That rehab number doesn't include financing costs and the state of illinois has crazy high taxes. 

I've even had tenats bring their own range, but usually that's included in the lease as are dishwashers.