Steven Hamilton II That formula will bring me close to 0 or negative ARV is 25k - 30k repair is excess of 25k retail without sweat equity which I can not do in IRA to make it worthwhile which is why i am looking to distribute property. does that make sense to you?

Duties as a property manager seem straight forawrd, flipping to a current market value with few improvement expenses is probably harder to identify and pulling in an excessive profit for the benefit of Officers or Directors could lead to problems, especially if the 501 tax benefit is pulled.

The costs I would tell you would be on the excess of $50k and could be $175k depending on what you want to get done.If this is starting to sound more in depth than what you expected.

Your gross rent would be upwards of $2000 per month and your net income would be in excess of $1000 per month, perhaps somewhat more early on before maintenance catches up (initial investment assumes a good rehab.).You would have the cash to pay back the loan if you wanted to rather quickly or you could re invest in similar properties as you accumulated more capital.I am basing my expectations on the 2% 50% guide found on BP and have been exceeding these numbers at least in the short run.these properties are in C areas which I define as lower income working class areas.

If you stick to your plan and are debt free at 38, you will have plenty of excess cash to pour into RE at that time assuming your employment situation remains stable.

The landlord can put that in the lease but it doesn't mean it will hold up in court.A judge will likely throw that part of the provision out and make the landlord go through the normal eviction process.We have a clause where the rent is late on the 5th and then an eviction fee of 150 is added on plus 10 dollars a day for each day they are late.The judge gives us the 150 and back rent as a judgement but sees the 10 dollars a day as excessive in most cases and will not give to us.We have it in there to make the tenant feel the heat and want to pay the rent instead of letting 10 dollars a day accrue.I am sure it is the same way with this other landlord.Most of their tenants are probably not fully educated on eviction law.So they assume they must leave by the 15th because they signed the paper.

So, in the next 13-15 years, hopefully I can have the reserves/liquidity in excess of that $200k you mentioned and still maintain a good income.

Your period of controling the property needs to exceed the term of your buyer.Next, rent credits, see what the lender will apply as rent credits, they may keep you to only amounts paid in excess of fair market rents which would put your buyer thinking they have more equity than the lender will allow, which means they come up short at loan time unless they have other savings and the deal falls through.Next, it is not permissible for a tenant to agree to pay for maintenance for a property as that is consider paid in the rental amounts to the landlord and is noraml wear and tear of and in the business of the landlord....so check in your area as how they view such an arrangement.I breezed over the numbers, make sure that your property will appraise out for your selling price to your buyer when the deal ends.

If there are too many title transfers (often more than even a single transfer) in the past 12 months, it may be very difficult for me to resell to an FHA buyer, as the property would be "red flagged" by FHA due to "excessive flipping."

Watch out for the tax man if your dividend is excessive compared to your earned income.