If the cost of an attorney and all of the filing costs that go along with it seem excessive, then you're probably not at a point where you need all that.

One of the properties is a 1 Br/1Ba that needs some improvement, there may be a moisture problem, it has a noticeable bug problem, last year there was a plumbing problem, yea...it needs some work.I am not sure about the classifications nor the current living environment of the other property, but my guess is it's 50/50 on similarity.The owner is offering my friend both properties for $150k with $5k down.

However, that amount of excess is recent due to my wife becoming full time where she works, so no nest egg built up yet.

We have gas FA in our primary residence and electric FA in our family vacation property.I absolutely prefer gas forced air heat - natural gas is a good value in our area and forced air movement keeps moisture down thus reducing problems with mold.

I'm just applying the 50% rule that says 50% of gross scheduled rents will go to vacancy, expenses (taxes, insurance, routine maintenance, make ready costs, tenant damage in excess of deposits, utilities at least when its vacant, CPA fees, legal fees) and capital (roofs, floors, appliances, furnaces, sewer lines, etc.)

If yours exceeds that, you won't get much value for the excess.

But if there is nt something like excessive repairs you found out about after getting it under contract, the seller may not want to go back to the table.

Ok, I'm not actually going to buy but, I've been looking at this site excessively, and decide to give my valuation skills a go.

The client specifically told me he wants in excess of 20k down to make it worthwhile to hold a note.

How about management, advertising, entity maintenance, insurance, evictions, setouts, legal fees, damage done by tenants (in excess of the security deposit), lawsuits, utilities (at least during vacancies), capital expenses (not technically an operating expense), etc, etc, etc?