And in NC, every person (no exemptions for personal self-dealing or low annual transaction counts) engaged in the business of buying personal property notes is covered.

Seems like it would easier to increase it at annual renewal time.

. = 43980 annual gross incomeUsing the 50% rule we arrive at $21,990 (taxes, insurance, maintenance, holding costs, vacancy, property management, other expenses...?)

Price: $75,000Equity/Down payment: $20,000LTV: 73.33%Monthly Rent Income: $1,150Yearly Gross Operating Income (accounting for vacancy loss): $13,000Taxes and Insurance (yearly): $1,500Yearly Condo Fees: $3,600Misc Yearly Maintenance: $600Yearly NOI: $7,300Yearly Debt Service: $4,500---YEARLY BEFORE TAX CASH FLOW: $2,500CAP RATE: 9.73%ANNUALIZED CASH-ON-CASH RETURN: 12.5%What do you think?

$275 on a $500 apt is 4.5% of annual rent, $35 on same apt is .6% off your top line.These items should be part of the construction/improvement inspection and not some arbitrary re-rent inspection (did you make any improvement?)

Even if you have leases on all of the units, there will be annual turnover and that creates lost income as one tenant moves out and another moves in.It is always better to err on the side of being conservative than base an investment on pie-in-the-sky numbers.

In part the article said, "Initial notices of foreclosure, the start of the process, jumped 6% in the second quarter from a year earlier, the first annual increase since 2009, according to RealtyTrac Inc."

Many of the successful firms involved with real estate have returns around 8.0% to 9.0% annually.

If so then here is the cash flow:$14,940 :Annual Rent- $1494 :Vacancy @ 10%$13,446: Gross Income- $1,345: Repairs at 10%- $2,110: Taxes- $1,163: Insurance- $ 336: Utilities @ 2.5% (Covered for vacancy)- $4,953: Total Expenses$ 8,493: Net Operating Income- $8789: Mortgage Payment of $732.38 x 12 Months- $ 296: Before Tax Cash Flow.It is going to cost you $25 out of pocket every month to own this property - that is if everything goes well.

You've just spent 10% of your annual rent, though.