Our first multi family purchase was of a property where most of those systems and the units themselves were in poor condition, such that we're having to ultimately put in about $9,000 per unit to bring them up to the point where they command higher rent and we can attract the type of tenant we want to lease to.  

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And yes, it ultimately comes down to each owner properly taking care of their units - the only issue is that many don't, a few do, and those that do will be penalized even poor, so we are looking to see how we can best protect them and having owners responsible for their own units helps to a great extent.  

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Ultimately, a temporary pole is less hassle.

I say “Yep”.When the bank came back with the increase in EMD from $500 to $2500, I asked my agent if that was because they wanted to increase the likelihood that I would not walk.She said that she believed that was the case.So, I believe at this point, ensuring I close is more important than the sales price.Plus I already stated that $17,500 was best and final.So, I countered back at $17,500 with $2500 EMD.It was accepted.My lender couldn’t believe it.After closing, the bank and I discussed financing options.Since it ended up being all my cash for the purchase, we decided on a construction to permanent loan.We got an appraisal value for its as-is condition and it’s ARV.When analyzing the property, I tried to be conservative and used a $120,000 ARV.As-is condition came back at $60,000, and ARV came back at $145,000.Comps were had to come by, as this is a small, rural town and there hadn’t been many homes sold recently.The bank would ultimately lend me up to 75% of the ARV, or $101,000 in 4 draws.The loan would be interest only during the renovation, and convert to a mortgage when completed.The loan is 10 year fixed at 6.25% with a 25 year amortization.Projected costs: Electrical work--$5,300Renovations--$64,000Zoning Hearing for approval for conversion--$1,500Insurance, permits, property taxes, and other holding costs--$2000Total Budget--$73,800Renovation took just under 3 months, with virtually no surprises.The electrician came in at budget, and the renovations had $4,000 in overages.With the purchase price, loan costs, and renovations, I am right at $101,000.I also believe that if I chose to get a new appraisal, it would come in much higher, as since the first one, a few houses in the area have sold and would support a higher value.So here’s a quick run-down on the numbers:All-in price:$101,000Value:$145,000Income:$850/month x 2=$1700Monthly Expenses: Maintenance 10%:$170Capex 10%:$170Vacancy 5%:85Electric:$20Trash:$55Insurance:$100Property Taxes:$185.33Mortgage:$666.27Total:$1451.60Monthly Cashflow--$248.40Money in the deal—ZERO DOLLARSYes, I know that I did not account for property management in my numbers.The reason is that there is industry moving into the area, and higher paying jobs as well.I believe that rents will increase and support property management down the road, if I choose.If that doesn’t happen, well then I’m stuck managing forever or selling it at some point, but it is a risk I am willing to take at this point.Is this deal a home run?

If you are sure you want to put your hard work, drive, etc. into real estate my advise would be to become an agent with the goal of not simply brokering transactions but ultimately using your license for your own benefit as a principal.  

I don't know very much about financing as an LLC, but would ultimately like to purchase properties under an LLC to protect myself.

-The other says that it increases the appeal of the condo for someone who wants to live in it because they are not going to have a lot of turnover (i.e. consistent neighbors, other people who care about the community).Ultimately I think the limit hurts property values, but I am sure there are factors I'm not privy to.

So ultimately I want this tenant out.