I accidently stumbled upon this website and fell in love with the lucrative amount of information available for members.

As always try to have a little reserves for unexpected fixes .

Of course tenants can lose their job and unexpected life events happen even we we did our job right.Property management fees vary from low flat fee to 10%.  

I'll have to check when the existing homes were built and see if that correlates to the crash.It is possible, though, based on the sub-division where Iive, the geology may have been unexpected.

If you are using hard money you need to budget for the points and fees as well as traditional third party closing fees.Repairs: The money it is going to take you to rehab the property plus an extra 10% of estimated repair costs to account for unexpected repairs.Holdings Costs: Here is where a lot of investors get tripped up.

Back then, I was really young, I had no money and I had practically no credit so at that time, owning a beach place was really just a pipe dream.I found BP more by accident than by anything.

It would not be wise to leverage in any situation, in my opinion, without adequate reserves for the unexpected, however.

To get there I am working on increasing my income and reducing my daily living expenses.I had a massive personal budget overhaul about a year ago and reduced my expenses as much as I could, all expenses are planned and budgeted and I know exactly how much cashflow I have each month if there are no unexpected expenses.Part of that is I am focusing on flipping/wholesaling property to build more capital and then use it to buy more rentals as well and focusing on increasing my J.O.B. income until I can do REI full time.I think either route can work, buying only rentals may be a little slower at first but if the equity and cash flow are managed well it can increase more and more.

i know what Rubs is, the only problem is this doesn't seem accurate it the tenant leaves all the lights on all the time, or leaves the water running by"accident"

You can built that back up...or the "worst case" is you take out a <insert form of debt here> if you have an unexpected cap-ex expense come along.