Steven Hamilton II That formula will bring me close to 0 or negative ARV is 25k - 30k repair is excess of 25k retail without sweat equity which I can not do in IRA to make it worthwhile which is why i am looking to distribute property. does that make sense to you?

Then after you do all the renovations, or new specialized construction, the government funding could dry up and you could be left with a specialized building that appeals to only a very small audience.

Duties as a property manager seem straight forawrd, flipping to a current market value with few improvement expenses is probably harder to identify and pulling in an excessive profit for the benefit of Officers or Directors could lead to problems, especially if the 501 tax benefit is pulled.

The costs I would tell you would be on the excess of $50k and could be $175k depending on what you want to get done.If this is starting to sound more in depth than what you expected.

Inventory drying up due to banks hold up in foreclosures because of robo-signing.

Your gross rent would be upwards of $2000 per month and your net income would be in excess of $1000 per month, perhaps somewhat more early on before maintenance catches up (initial investment assumes a good rehab.).You would have the cash to pay back the loan if you wanted to rather quickly or you could re invest in similar properties as you accumulated more capital.I am basing my expectations on the 2% 50% guide found on BP and have been exceeding these numbers at least in the short run.these properties are in C areas which I define as lower income working class areas.

If you stick to your plan and are debt free at 38, you will have plenty of excess cash to pour into RE at that time assuming your employment situation remains stable.

How about an app that gives the tenant discounts on services (dry cleaning, restaurants, banking, etc) provided by local businesses, or maybe additional services provided by landlord that would help increase their Other Income?

The landlord can put that in the lease but it doesn't mean it will hold up in court.A judge will likely throw that part of the provision out and make the landlord go through the normal eviction process.We have a clause where the rent is late on the 5th and then an eviction fee of 150 is added on plus 10 dollars a day for each day they are late.The judge gives us the 150 and back rent as a judgement but sees the 10 dollars a day as excessive in most cases and will not give to us.We have it in there to make the tenant feel the heat and want to pay the rent instead of letting 10 dollars a day accrue.I am sure it is the same way with this other landlord.Most of their tenants are probably not fully educated on eviction law.So they assume they must leave by the 15th because they signed the paper.

Be aware that such financing can easily dry up, so have an alternative at all times, especially as you cross the line at 4 to 10 houses.