My wife and I were planning on funding an emergency fund to cover unexpected maintenance and vacancies, but were hoping to keep that money and finance the property with a 100% or 95% loan.

Personally (and I think a lot of people here would agree), a return like that isn't worth the effort of having to manage the property (you could get a slightly smaller return from a savings account), and the big risk is if you have any deferred maintenance or unexpected expenses, at which point you could easily go cash flow negative.While I've seen a lot worse deals asked about on this forum, this one isn't particularly great...especially in this market where great deals are available on every corner.

For every item I knew needed to be fixed or replaced, 4 more unexpected items turned up.

It's perfect for my needs and we are delighted to make this work.

You should also keep this letter for future reference, since things in life have a tendency to change unexpectedly.

I'm planning on having properties in LLC groups owned by a corporation, my hope is that it will limit liability to each properties.The biggest thing i've learned in the past year and a half has been underfunding investments, our apartment complex has cost us greatly from unexpected repairs, thankfully this secured line of credit will allow us to have more than 10 times the expected ammount(s) to rehab each property per time.

On a side note, shouldn't we see some crazy community improvements as a result of the unexpected tax revenues throughout the early 2000s?

Then, bam, something unexpected happens and all our plans are disrupted.

Either way, we're delighted to have you on board and I hope that you'll become an active member of the community!

Using the 40% for expenses I use because I'm willing to manage for free and I have optimism about the area, its right at $99.For rentals, though, you do need some cash in the bank to cover unexpected and expensive items like furnaces, evictions or tenant damage.