hell yes...... but you can also go bankrupt real fastIf its negative $400 cash flows now, the rent is going to have to go up a TON to truly cash flow positive once you factor ALL you expenses for CapX, maintenance etcExit strategy..... don't forget all you closing costs if you try and bail sooner rather than laterYou are making some BIG assumptions to rationalize this deal....that's a big red flag that unless you got deep pockets, this is not a deal for you

Even by his calculation, you may need to account for more as you may be in the red after two turns and they may come faster than you think.You just have to be very, very careful with how you are viewing a cheap investment like this.Keep in mind that everything is more expensive these days. 

Hello All:I am looking at this property at auction and I like many things about it and can work with it, but this is my one red flag - this tank set back about 25 feet from the house. 

Or a sewage lagoon. this has a red flag nightmare written all over it.... those numbers are the sellers....and are not how these things are run...This is not investment advice...but please do more research about private utilities before you purchase this. 

I dont want to say exactly which deal I am lookIng at but Trulia‘s heat map shows it in the red (high crime).

When a seller says they don't have one or can't provide a Schedule E, is that a red flag?

I am looking into a few properties that I would keep as rental properties in the Highlands/Red Bank/Middle Town area in New Jersey.

That will show you exactly where the urban area ends...tons of red dots? 

I'd like to get some advice to see what anyone would do in my situation and if they would be cautious of red flags.So I'm currently in business with my dad.  50-50 arrangement, we own 1 property  so far and all has been going great. 

This is not really a red flag, as there are ongoing repairs and maintenance for any condo, and well-run associations take care of these things on an ongoing basis.