You could have the limit raised annually based on the new equity in the properties.Also if properties are purchased using your LOC then you wouldn't have to season the property to refinance.Hope this helps clear things up.Jeff V

If you can sell it for $284,000 ARV and pay off $203,000 mortgage, you have $81,000 equity in the place (that you can keep in the rental, or cash out upon sale (less selling expenses).So, $251/month cash flow ($3010 per year) is now just a 3.7% annual return on your $84,000 equity "invested".

About 90% occupied currently.Price: 550KMonthly/Annual: 8100/97kNet Operating Income: 49kLet me know if i am not including any information!

Currently he only needs funding to help cover the rehab completion.Here's a summary of the dealARV: $315k (I've verified that this is in the ballpark +/- 10k)Purchase Price: $130kRepairs to date: $32kAdd'l rehab estimate: $25k << my pieceProposed terms from my colleague:I am offering 13% annual on a 12 month note with a guarantee of minimum 10% return.

However, in CA with the annual franchise tax of $800, additional LLCs are relatively expensive.

But let us say I would be satisfied with about 10% annual return after 10 years, the house will have to appreciate (keeping the calculation simple) by (10-2.4)*10 = 76%.While I am very positive about appreciation of RE in silicon valley (specially SFHs), but 76% appreciation seems unlikely to me.

Besides the approximately  $200 to obtain online, are there annual dues to maintain your license?

# Apts 8 Monthly Rent $825     Annual Rent $79,200     Annual Rent Increase 2.5%           CF $ - Year 1 Year 2 Income   Rental Income (Increase 2.5%/yr) 2.50% $ 79,200.00 $ 81,180.00 Vacancy (10% in Yr1) 5% $ 7,920.00 $ 4,059.00 Gross Income $ - $ 71,280.00 $ 77,121.00       Expenses       Real Estate Taxes $1.2 / $100 value $ 9,000.00 $ 9,090.00 Insurance 2.50% $ 3,000.00 $ 3,075 Trash Collection ($250/unit) 1% $ 2,000.00 $ 2,020 Common Utilities 2.11% $ 2,400.00 $ 2,451 Management Fee (10%) 10% $ 7,920.00 $ 8,712 Repairs/Maintenance 3.00% $ 2,138.40 $ 2,313.63 Turnover/Redecorating 1% $ 2,000.00 $ 2,020 Snow Removal/Parking lot cleaning 2% $ 1,500.00 $ 1,530 Landscaping 2% $ 2,000.00 $ 2,040 Admin Fees 2% $ 1,200.00 $ 1,224 Total Expenses $ - $ 33,158 $ 34,475 Net Operating Income $ - $ 38,122 $ 42,646     Property Value @ 8 CAP $ - $ 476,520 $ 533,073 

I assume you mean outside the 100 year (1% annual event probability) zones.  

I got the the estimate at $3750 annually.