Here is what must take into consideration.1.Income:Rental income=$2000Laundry=0Storage=0Misc=0Total monthly income:$20002.Expenses:Tax:$150.00Insurance:$100.00Utilities: Electric, sewer, water, trash and gas:$0.00HOA fees or Home Owner Association:$0.00( it will only cost nothing if the home is not located in a HOA area.)Lawn care:$0.00Vacancy:$100.00Repairs:$100.00Capital expenditures: $100.00Property management:$200.00Mortgage(only if you don't pay cash):$860.00(Assumptions about mortgage:Put down money for a down payment.Get a $160000 mortgage with 5 percent interest in a 30 year span.)Total monthly expenses:$1610.003.Cash flow:Income:$2000.00Minus expenses:$1610.00Total monthly cash flow:$390.004.Cash on cash ROI or return on investment:Down payment:$40000Clothing cost:$3000Repair money or rehab budget:$7000Misc other:$0.00Total investment:$50000$390.00*12=$4680.00Annual cash flow=4680Total investment =500004860÷50000= 9.36 percentCash on cash ROI is equal to 9.36 percent.

Assume 1000 sf of flooring. 10 year life span. $6000/10 year life span/12 months in a year=$50 per month for 1 item.

Just in that short 3 week span we've learned: purchase money notes, entity selection, how to cover yourself from contractors, tenant qualification.

Long span of roommates, too.

Considering you could expect to die between the ages of 65 and 90, a 25 year span, that 4 to 6 years in college, even if wasted, would not have to devastate your financial prospects.

The same question that hunts me every year raised its ugly head once again.Issue #1:I have two times of expenses, routine maintenance that sometimes is quite costly .. like labor and materials to repair main sewer .. or upgrading the unit after its vacated.Second category is rehabbing trashed new acquisition.IRS rule is relatively simple: If the item has short life span .. like a gasket or so .. labor and materials can be expensed in the same year.

Companies that rehab and load tenants in there is no income stream model that is proven over time.If a company can show investors that over a span of years investors have bought from them and here are actual and not stated returns from case studies and you can show those returns than you have something.

All recommend some type of water-guard device that will span 32 feet along one wall of the house that will collect/remove the excess water that is causing the problem.

Then prices drop as the only buyers are investors and tenants/LL's generally don't care about the property too much.As to the things to consider when purchasing a condo: I always ask % investors, condo units in arrears on fee's (hint about upcoming distress sales), check HUD online and see if the development is approved and when the approval is up for renewal, check the financials/reserves thoroughly - there is usually a fairly recent engineer report giving live-spans and replacement costs of bigger items, I also ask if they expect any special assessments coming down the pike.I think that about covers it.

I've been a lurker here at BiggerPockets for some time, but now I have a question that I'm hoping someone can answer.

I have a long term rental property that I had to sell. The sales agreement was signed in November...