To make things simple, let’s consider the following expenses:Rental property taxes: $500Repairs and maintenance costs: $1,000Utilities: $1,200Property management fees: $2,500In this case, the total allowable expenses are $5,200.

I am thinking over a 30-40 year time horizon, the nicer system will require less maintenance and also last 3-5 more years, so would end up being the cheaper option in the long run.

It looks like no matter what, my actual name will need to be filed on annual report with the NC LLC (even using a registered agent). 

Once all three units are operational, you’ll have three income streams to support your expenses.Evaluating if it’s a Good Deal:Cash-on-Cash Return: After figuring out your total investment (down payment + repair costs + holding costs), calculate your net annual cash flow (rental income minus expenses like mortgage, repairs, insurance, etc.).

This doesn’t negate the need to check the lines, however.Pay Attention to Pride of OwnershipAmateur repairs—or a lack of repairs—and deferred maintenance are typically the result of a “low pride of ownership.”

I have been utilizing Facebook MTR groups in my market as well and have come up flat.Like I originally stated in my post I am currently breaking even simply with my in season short term rentals, which has been covering my annual expenses.

I do notice that the annualized return generated by BP is usually quite a bit lower given the same inputs.  

If you want to figure out the value logically, you can create a spreadsheet that will show your cost of financing and principle paydown on an annual basis to figure out the break-even date between the seller-financing price vs paying market price, but with bank financing.You mentioned a 40-year term, but is there a balloon?

Let’s say the main tenant accounts for most of the annual revenue with a lease ending soon (is healthy and probably looking to resign).

. - Making sure their responsibilities and your responsibilities are clearly defined, giving heads up about workers coming in to do upgrades/maintenance, being proactive about renewals, deposits, strict about the lease agreement (but lenient when it makes sense), etc. has been instrumental. 2.