Vacancy, maintenance/cap ex, PM, Misc.  

For many of us, our cost structure would be higher than yours (vacancy, turnover, maintenance, cap ex) over the long term.

Since my rentals cash flow, there is an excess to cover cap ex, vacancies etc.

Learn about the Net Operating Income (NOI) and Capitalization Rate (Cap Rate)—these are essential to analyzing the potential profitability of a property.Return on Investment (ROI): There are different ways to calculate ROI in real estate, such as looking at your total return after a sale or assessing your rental income versus initial investment.

Yes, the more units you go up, generally the less players in the game so there is some advantage in purchase competition as you go up, but also more management scale and cap ex for someone who is new.3.

Originally posted by @Tushar Prasad:@Engelo Rumora How is cash only deal better than leveraged deal - is it because you sell very cheap houses with very high cap rates, which makes the opportunity cost associated with the cash downpayment to be irrelevant, and also makes the cash-on-cash roi for the cash only deal to be higher than a leveraged deal? 

I would say the cash flow would go up every year and that would usually be the case but my son will be moving into one unit probably for just the labor to rehab the last unit (collected rent will go down for a year).After that rehab is complete, at market rent I would have about $8k/month cash flow with underwriting that most would consider conservative (for example $1200/month allocated to maintenance/cap ex). 

The deal itself seems like an incredible opportunity for the right buyer,  penciling at a 9 CAP. 

Most lenders are capped at 75% LTV on a cash out refinance, so something to think about while you do the math.

Companies are having to set aside a certain percentage to cover the Cap Rate insurance and as an abundance of caution with these interest rates- class B are paused.