It is different if you are the owner as you have the risk, maintenance, cap expenses, etc.  

Don't forget vacancy, maintenance, special assessment savings ( and/or Cap Ex.)

He walked us through the numbers on the expense factors and the cap rates he’d experienced.

So for retail I tend to know what cap rates are state by state and where the more affluent areas are.For retail MTNL about 1.5 years into the recovery cycle.

So wouldn't that make your cash flow for the first 2 properties the sum of the rent minus HOA, taxes, and %for cap expenses and vacancies?

The subject property meets FHA minimum building guidelines" (exact quote, the CAPS are from appraiser, not from me... he writes "was once" like it was 10 years ago, not 2 days ago, muahaha). 

. $804.03 PITI $41.67 Sewer bill $146.50 Property Management (self) $146.50 Cap Ex $73.25 Vacancy Rate+$58.60 Utility/Misc$1,270.55- NOI-$1,465- monthly rent$194.45 Net Profit Income per month x 12 months = $2,333.40 Annual Net Profit IncomeTotal Deal Appreciation: $14,000- (38.25%) ARV was $101,000 Depreciation: $2,345.45- (6.3%) Amortization: $984.58- (2.68%) 1st year loan pay down Cash Flow: $2,333.40- (6.64%)*Property Management: $1,758- (5%) I self managehad script issues with bp website, could not rotate pics.     

Cap rate generally varies between 15-18% which is very decent.

., the taxpayer owned one parcel of land for 11 years and upon sale the court ruled it was inventory and would be subject to ordinary income taxes rather than cap gains.My point is, @Anna Watkins, that you need to speak with a savvy professional and lay out your facts/develop a defense plan before you redevelop.

My total out of pocket is $85k.From my understanding, it being 7 units, the property is appraised based on NOI/Cap rate.