We are looking at larger 3BD/2BA for opportunities to convert extra rooms/finished basements/garages into extra beds/baths.We noticed if the rent is about 0.5% of the total property value, we will be about breakeven for pure cashflow at the following assumptions using BP's Rental Calculator (e.g., $500k property requires ~$2500 rental income to breakeven): 5% CAPEX, 5% vacancy, 5% repairs/maintenance, and 8% property management (we have something worked out with our property manager)Here are our questions:-Would ~$600/room be a competitive rate?

Great point - most PMs can be pretty bad at the asset management side of an investor’s portfolio and just focus on pure play property management responsibilities.

The plan is purely financial. 

So, only 10% contains remaining profit for the contractor, while the rest remaining are pure costs.

My first thought was pure excitement. 

And if he represents it as such knowing it is not thats mortgage fraud.I cringe whenever I hear "well, its done all the time" which can be true but won't make it right or, as importantly, defensible when things go wrong.LOL, nobody has EVER accused Boston of being an innocent little town and pure as the driven snow! 

With these same numbers, a $315,000 purchase price would give you a CoC return of around 7-8% and about 600/month PURE cash flow. this is all assuming a 20 yr Amortization with a commercial loan.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,025,000

Cash invested: $2,400

I Found a 12 plex that was owner finance in downtown Anchorage. We had a mai...

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,025,000

Cash invested: $2,400

I Found a 12 plex that was owner finance in downtown Anchorage. We had a mai...

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,025,000

Cash invested: $2,400

I Found a 12 plex that was owner finance in downtown Anchorage.
I got the...