Your estimated Capitalization Rate would be about 6.7%.Make sure that you have sufficient cash reserves for unexpected repairs and expenses.Make sure that each month you deduct the following expenses from your rent and save them for future payments: (1) real property taxes, (2) replacement reserve and (3) insurance reserve.For your information, the 50% rule, which is generally considered to be fairly close to actual expenses, states that …50% of your gross rents will be taken up by expenses... property tax insurance vacancy property management maintenance capital repairs legals and accounting, etc.From the remaining 50% you service your debt, if any, and the remaining is your profit.

Hi Scott, A significant advantage of the LLC is the limited liability protection it provides for landlord & other situations in case the completely unexpected happens (accidents or injuries causing medical bills, etc.)

I am not sure if I can dissolve the previous component of my LLC and be allowed to keep the name etc.  

plus of course you have that 14k rattling around in your pocket, rinse and repeat.These are fairly conservative figures but they depend on a number of important variables:The income and expenses are close.There's not a ton of deferred maintenance or building components at the end of their life.That the seller will accept 8% interest only (it's really pretty good compared to the alternatives today, maybe he'd even take less).That you can refi at 75LTV and something close to 6% in five or so years (with three or four years of solid operating history you should be able to refi... or sell at a nice profit).And of course that you can operate the property to those numbers.Good hunting-

(Horizontal cracks are a big deal, vertical cracks not as much), condition of main beams (if it has wooden structural components, is there wood-destroying insect damage?)

While I could have replaced a leaking component in my 12 year old HVAC system I decided to replace the system with a more efficient, quieter and reliable (I hope) new installation. 

I understand there are contingencies in a contract regarding the inspection period that give the buyer the option to opt out if there is something unexpected that comes up in the inspection.

It should be in your lease that they have to pay for any short term unexpected issues.  

I've purchased a house that had 'everything replaced' but I've been hit with big bills unexpectedly...so if you feel the urge still without cash reserves (or the ability to build one) I hope you have some credit you can tap into (which it doesn't sound like do).  

The vacant side that I would be moving into was recently updated and has many new components.