Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

Avoid common pitfalls like skipping due diligence, underestimating repairs, and overleveraging having reserves and a strong team is key.Good luck!

Remember, in this model, you are planning on holding on to these properties as rentals so pay now in quality, or pay later in headaches and repair costs.

This property is ready to welcome its next owner with no repairs or updates needed.

This can cover unexpected vacancies or repairs.

I am invested in a small multi family in TX and the management was not able to fill the property and do repairs and the income has dwindled badly.

If you can stomach the negative and any repairs for the next 5 years then long term wise it'd be worth it.

This simple update has big implications for property owners, allowing small repairs and maintenance to be handled more quickly and affordably.

Class C bought in 2023 on the East Side of Indy has not been great, repair calls 9 times out 12 months.

What prompted you to go the C Corp route?