If anyone has good contractor recommendations for Montgomery - please let me know because as a remote investor - that will make or break this deal unless I wholesale.If I rent it out, my costs would be as follows:$455/mo PITI$100/mo property management fees$150/mo allocated to repairs/vacancy (build up over time as major items should be repaired during rehab)That would leave me with $45-$195/mo in cash flow.  

So I have 3 rental properties in central Illinois. 1 has a mortgage on it. I'm selling one of those 3 tomorrow and can just use the proceeds to pay off the mortgage on the third and pay off the mortgage - leaving me w...

Consists of 2 one story buildings, a pool, some lawn, and some covered parking.Asking price = $750,000Current income = (11 x $585) + ($685) + ($300 for storage garage) + ($125 laundry) = $7545/monthMarket income = (11 x $650) + ($750) + ($300 for storage garage) + ($125 laundry) = $8325/monthInsurance = $3000/yr = $250/monthTaxes = $5000/yr = $420/monthWater/sewer = $700/monthTrash = $120/monthElectric = $200/monthLandscaper = $220/monthPool guy = $150/monthMaint + cap ex = $85/unit/month = $1020/month (I know most people don't lump those together, but it's just how I do it to run numbers, and this is what we allocate per unit at our other units in this area)Above total expenses = $3080/monthIf I go with the same vacancy (7%) and PM (6%... yes, our PM is giving us a deal) as for our other units in the area, that means current net income is $6600/month, and market net income would be $7275/month.We have enough cash that we could put 25% down now to start the reverse 1031, but I want to look at this longer term to see what our final numbers would be.

The numbers work, and are as follows:Purchase price:  $340,00025% down: $85,0003% closing costs: $7,700Property Tax/ yr: $1,400Insurance/ year:  $144035% of rent allocated to property management (myself), Repairs, maintenance, vacancyMortgage: 5% interest 30 years local lender.  

Thank you all for your repliesDerreck Wells,I was wondering if you could please shed some light , on what I may face with this Lead paint issue , as I will be using a FHA 203K rehab loan.The property needs around $25,000 worth of work done to it  ( New rook, new flooring, new AC unit, appliances, inside and outside painted, some electrical work )I can't exceed this amount of $25,000 that is allocated to the repairs , as I am working with a limited budget on what I have gotten approved for via a Loan, and that is $80,000 .The purchase of the house will be right around $52,000 and then adding on for any closing costs / pre-paids that I may have to come up with .... $25,000 is my Max amount for the repairsI just don't want to jump the gun on getting an Inspector out there to inspect the property , as well as an appraiser .... only to find out that the Lead paint is going to be an issue , and end up costing me an extra $5,000 to have the whole house scraped and the lead paint removed , via some FHA rule ?

From there, I will have that rental revenue allocated to an account strictly to purchase the next property, and so the snowball effect that you all know about begins.

For me it's pretty simple:  I want to (a) allocate the cost of hot water to tenants; (b) save on upfront capital costs to keep my budget in tact; (c) provide dependable hot water; and (d) check the box with long term investors I'm targeting for a flip of the property at completion.Opinions are greatly appreciated especially from contractors/investors with low-rise multi-family experience in the northeast US.

You definitely want to allocate money to vacancies.  

Check out this article for how I go about allocating reserves for cap ex.

I would consider investing half in private lending and allocating the rest across other investmemt vehicles to diversify in the event the real estate market took a dip in the short term.Brian