Property taxes are 650, insurance 160, outsourced property management takes 10% of the rent, and another 10% of the rent is set aside each month for future repairs. 3750 x 0.8 = 3000. $3000 profit, minus about $2300 in mortgage, property taxes and insurance leaves about $700 cashflow, when I move out.

Penalties of these Federal charges may include:30 years in prisonUp to $1 million in finesIt's a Federal crime.I'm not currently at foreclosure, but am recently out of state starting grad school, no income, and home needs repairs that I simply do not have the money to make.

Class C bought in 2023 on the East Side of Indy has not been great, repair calls 9 times out 12 months.

Repairing damage to the property caused by the tenant or the tenant’s guests (beyond normal wear and tear).Cleaning the rental unit to return it to the same level of cleanliness as when the tenant moved in.Replacing or restoring personal property or appurtenances (fixtures) that were provided by the landlord and damaged or lost during the tenancy.Here's a link to the full California Law: https://www.gowhale.com/security-deposit-laws/california

They claim the repairs were done and that the properties were worth more at the time of purchase but that the area has deteriorated since then.Any help on this subject would be greatly appreciated!

We are splitting up capital contributions at 50%, but see having different involvements in the repair process.

Today it has doubled in value with only about $75,000 in repair money.

Quote from @Ricardo Polanco: Good evening everyone, I am evaluating the possibility of buying a multifamily property in Scranton, at this moment it has 2 apartments that only need cosmetic repairs and it has a big 2nd floor unit that needs a full repair.

The asking price is under $125k and like mentioned earlier, the renovations would be 50% so there are major repairs (not move-in ready). 

Even with the mortgage paid off, some of the $2000 in rent will go to maintenance, repairs and property taxes.