Also be sure to check out with your friend what kind of financial standing the building is in (when was their last increase on the coop fees etc and is there any capital expenditure planned in the near future) as these monthly fees don't go away and can definitely inhibit your ability to produce cash flow from Coops..Hope this helps somewhat!

You will have larger expenditures from time to time when systems like the water heater fail but these expenses are not frequent.

The point, Sherlock, is that any business requires the expenditure of money at times on ancillary services, even consultation fees, and anyone who doesn’t do their utmost to protect themselves from the potential legal minefield that property ownership represents in the USA is courting disaster.

On the other hand, I prefer Mint when it comes to tracking my monthly budgets and individual expenditures.

Although you are getting $125 a month right now and the property is newer, once you having maintenance needs or hitting capital expenditures, years of cash flow can be eaten up in a single incident.

That actually provides a rough return of 12-15% annually before maintenance, capital expenditures, vacancy, and any carrying costs (i.e. loan interest).

We also need to know about expenses including utilities, maintenance, capital expenditures, lawn care, taxes, insurance, vacancy loss, etc.

.— (1) As used in this part: (a) “Broker” means a person who, for another, and for a compensation or valuable consideration directly or indirectly paid or promised, expressly or impliedly, or with an intent to collect or receive a compensation or valuable consideration therefor, appraises, auctions, sells, exchanges, buys, rents, or offers, attempts or agrees to appraise, auction, or negotiate the sale, exchange, purchase, or rental of business enterprises or business opportunities or any real property or any interest in or concerning the same, including mineral rights or leases, or who advertises or holds out to the public by any oral or printed solicitation or representation that she or he is engaged in the business of appraising, auctioning, buying, selling, exchanging, leasing, or renting business enterprises or business opportunities or real property of others or interests therein, including mineral rights, or who takes any part in the procuring of sellers, purchasers, lessors, or lessees of business enterprises or business opportunities or the real property of another, or leases, or interest therein, including mineral rights, or who directs or assists in the procuring of prospects or in the negotiation or closing of any transaction which does, or is calculated to, result in a sale, exchange, or leasing thereof, and who receives, expects, or is promised any compensation or valuable consideration, directly or indirectly therefor; and all persons who advertise rental property information or lists.Keyword real property of othersHere is the Fl definition of real property(i) “Real property” or “real estate” means any interest or estate in land and any interest in business enterprises or business opportunities, including any assignment, leasehold, subleasehold, or mineral right; however, the term does not include any cemetery lot or right of burial in any cemetery; nor does the term include the renting of a mobile home lot or recreational vehicle lot in a mobile home park or travel park.Exemptions.

Variables BP Lenders number Purchase price $117,000.00 $117,000.00 Loan amnt $117,000.00 $117,000.00 closing costs $4,000.00 $4,000.00 Repairs $5,000.00 $5,000.00     Rent $1,200.00 $1,200.00     Monthly P&I $525.38 $834.68 Taxes $69.23 Insurance $35.00 HOA $145.00 PMI $49.58     Vacancy (5%) $60.00 $60.00 Rapairs (6%) $72.00 $72.00 Cap ex (5%) $60.00 $60.00 Management (10%) $120.00 $120.00     Total Expenditures $1,136.19 $1,146.68     Net Operating income $63.81 $53.32     Cash on cash 8.51% 7.11% Income-Expense Ratio 0.95% 0.95% Cap rate 6.55%    

And how much EXTRA will you need to borrow along the way for capital expenditure items such as a new roof?