Please look at this example:Beautiful Mansion in PA, bedroom community for NJ and NYASKING 750000Rents: TOTAL 88,800/yr1,200, 600, 1,100, 900 for apartmentsa vacant apartment for 1,600 and a vacant commercial space on first floor for 2000, both of which were occupied by the previous owner for years, so I don't really know where they got these last two numbers. because of this, I estimated to be more like 1,200 and 1,500, which would TOTAL 78000/yr more realistically I thought.Expenses: TOTAL REPORTED BY OWNER: 30218tax 16,450insurance 4,818water/sewer 4,470gas 273lawn/snow 3,897trash 1,020I ADDED 26,640for 10% VACANCY, 10% MANAGEMENT, 10% CAPEXTOTAL OPERATIVE EXPENSES: 56,858NOI: 21,142  (31,942 if I use his 88,800 NET INCOME)CAP RATE: 2.82%MORTGAGE SERVICE: 51,588 with 20% down loan 600,000 at 6% for 20 yearsMeaning I would have to pay out of pocket 20-30K per year just to cover the loan.For the Mortgage service to match the NOI and be cash flow neutral the price would have to be 312,500 (or 468,750 using his proforma income).I can provide more examples like this, but I think the point is made...

v=dO9nxRjIv2AI'm PM for luxury builder, all of our subs get paid when work is done.  

Ian what does the charts say will cause the correction.. for me in the real world of buying and selling.. what I see in some markets is high end is dicy ( luxury)  starter still pretty hot and first time move up.this is quite regional as well.. since our west coast markets are not SFR rental markets like it is out your way..

Is this an A+ luxury unit, a B, a fairly typical C, etc.?

Sheboygan seems to have quite a bit of development going on, particularly in luxury apartments/condos!

By 65, he managed to have a portfolio that put him in the ultra-high net worth category (~$20-30 million).

In terms of areas I would check out Grey's Ferry, 33rd Street in strawberry Mansion, parts of brewerytown, olde Kensington East Kensington West Kensington, Port Richmond, cobbs Creek, West Philly, Southwest Philly. 

Not sure if some old recommendations I got are not saturated already (Richmond, Germantown, Kensington, Cobbs Creek, Strawberry Mansion) .Target ARV ~ 140K. 3BR / 1000 sqftAny thoughts, remarks and recommendations would be appreciated.

I used some Traffic Master luxury vinyl tile in the kitchen and bath of a rental.

Both loan programs require the repairs to start within 30 days of the loan closing and to be completed within six months.The FHA has specific guidelines about types of projects you can finance with a 203k loan, but generally the only home improvements that you can’t finance are luxury items such as adding a swimming pool.