Planned energy-efficient HVAC installations will replace outdated ceramic heaters, reducing tenant utility costs, lowering insurance premiums, and qualifying for utility reimbursement programs—a win-win for tenants and investors alike.Inflation HedgeReal estate is historically a strong hedge against inflation.

You also need to consider that at a lower percentage of money down you will be paying a Mortgage Insurance Premium or MIP. 

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

Documenting your journey online or engaging on LinkedIn can also help expand your network.

You protect your assets by buying a landlord insurance policy, which comes with dwelling plus liability coverage. 

@Bryan Zayac  In PA, there is a state document called the Municipal Planning Code MPC. 

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

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.

We also recently got notice from our home Insurance that they are cancelling our policy because of exposed wires discovered by their inspector.

.🔹 Insurance Challenges – Even when insurance pays, it rarely covers the actual cost to completely rebuild.