Demand will be strong at this price point as the competition will be significantly inferior quality.24 unit complex (4 buildings x 6 - 1br units) built c.1978 - end of life interior but exterior structure / mechanicals appears sound.NOI forecast at 83k.Renovation budget at $375k inc contingencyPurchase price of $250kOur Bank will go to $565k @ c.4.25% for 5 years with 25 year amortization - they hold the note for the existing owner and know he is slipping into the default zone.

Once I get in a better place in terms of the property's mechanicals, AND I have my second property, I may hire a manager.

You're relying on an unreliable communications mechanism to justify spending money.

The mechanic of the oil gauge is quite simple for me.

I didn't run any of your numbers but why would you want to acquire the property "sub 2" when it sounds like you could just negotiate a short sale for the property and then settle with the contractor on your own since he likely would put a mechanics lien on the property once he figured out what was going on.

I'm just getting tripped up on the mechanics of how this works.Also, I agree this financing makes the deal less attractive which makes me think you could offer much lower than market rate.

Does not a short sale wipe out _all_ liens, including back city, state, and fed taxes, mechanics, (hospital) and even mortgage judgments and liens?

So you renovate...STARTING with the mechanical systems...plumbing, electrical, HVAC.

With the high tax rate of 48% in the past years (this has changed a little bit recently), this would mean that you could easily cut 50 % of your taxes if you used this mechanism.

I was raised to never pay someone for a job that you can do, which has lead me to always doing my own work, whether it be mechanical or home repairs.