I found a 2 flat for 129,000 great condition - currently occupied - gross rents are 2,300 - only issue is that taxes are $7,800 annually.  

Doing the math I figured with a 4 bd home I could rent out each room for about $500, $600 for the master bd, is $2100 gross rent minus the holding costs of utilities, mortgage, cap ex, etc, (1700) = $400 net cash flow (calculating if I didn't live in it, if I did I would be paying out of pocket $100/month to live with 3 other people).  

Unless your in a market like the Bay area were you pay 1.5 mil for the lot and build a nice spec for 200 a foot say 3k feet for 600k  and have 2.1 in it and sell for 2.9  which is common the 15% of project cost work.but if your in a market were lot is 100k   build is 200k and end product say is 350k.. and you pay 30k to the builder that is far to much by double.we hire for flat fee if we are financing the whole job and they are simply acting as GC and have no monetary involvement.  10 to 15k a door. is what we pay.. and if we are so inclined there can be a bonus if we do real well.hope that helps.. careful to tag your jobs to % of gross construction costs you may not like were you end up.

PM is typically an 8% gross rents business PLUS 'fees' and that's the trap - -nickel & dime you to death.

@James Lusk, you realize they're trying to gross $126k on top of what they paid just 3 years ago?

The one in the nice neighborhood rents for $2000, while the one in the slum grosses $1000.  

Hey all - I'm looking at multi-families in Chicago for my first deal and went to view this 4 unit on Saturday: https://www.redfin.com/IL/Chicago/3500-W-Cullom-Av...All units are 2 bedrooms and current gross rent is $40,140 annually.  

Closing costs: $3515 (3.5% down on FHA)Conventional 30 year @ 3.25%Income: Current rent: Lower 2BD $800 (rented MTM but I think I might be able to get $900)                     Upper 1BD $500 (I would occupy upper)Market Gross rents: $700-1200 2BDMonthly liabilities: Mortgage (P&I): $399Utilities: $150 Vacancy: $65 (5%) CapEx: $65 (5%) Insurance: $90 Repairs: $65 (5%) Property Management: Self managedProperty taxes: $408Total expenses: $1241Monthly cash flow~ $58.64/mo (Unless I can get $900 for rent then it would be ~$145/mo)My current rent is ~$500/mo with utilities.

Rental Monthly Income $4,800.00 (8 rooms x 600) ------- 4800 x 12 = $57,600.00 Monthly Gross Operation Expenses Mortgage950.00 Taxes191.00 Insurance 166.00 Maintenance Housekeeping 216.00 Landscaping 60.00 Repairs 10% - 480.00 Operational Electrical 350.00 Water 150.00 Cable/Internet 150.00 Reserves 10% - 480.00 Total - $3,193.00 Annual Gross Operation Expenses Mortgage11,400.00 Taxes2,292.00 Insurance 1,992.00 Maintenance Housekeeping 2592.00 Landscaping 720.00 Repairs 10% - 5,760.00 Operational Electrical 4,200.00 Water 1,800.00 Cable/Internet 1,800.00 Reserves 10% - 5,760.00 Total - $38,316.00 57,600.00-38,316.00______________NOI $19,284.00 19284.00/46,000.00 (down payment) = 41% Cash on Cash Return (CCR)

I really like the Indy and KC markets because I bought 4 houses for an avg of $50,000 each and they rent for $800....to me, that's like buying 1 property for $200,000 here in the LA market and getting $3,200 in gross rent...it's literally impossible here.