You are obligated under certain circumstances to have the local Board of Health inspect and verify that the apartment meets State Sanitary Code and safety standards prior to renting it.

Hey @Kayla GrauFrom your numbers and a quick, back-of-the-napkin, calculation I am getting more in the $300-$400 range for cash flow.

Some quick napkin maps.

I take it you didnt use the official BP calculator and instead did back of the napkin math.

Because they are sanitary.

When you get a profit and loss statement that's a cellphone photo of a hand-written note, literally on a napkin, and the rents and deposits are recorded as one amount in one place, another amount in a different place, and yet another amount in another place, it's good to have an estoppel to refer back to if there's ever a dispute with the tenant later about the deposit amount or some side deal they supposedly had going with the previous landlord ("They said I could have 5 dogs and an iguana even though the lease says 0 pets", "They said I could knock $50/month off rent if I water the plants", "They said I could use my deposit for the last months rent", etc).

I understand my net cash flow would effectively be (-) $350 for 18 months in this scenario.Bearing in mind that this is napkin math at this time, is there anything I'm missing that would eliminate a HELOC not being the best overall approach for me?

Description:7 duplexes, 2/2 with 1 car attached garage (one with no garage)built in 2001B+ class neighborhood, steady rental a lot of multifamily in the areaall on the same cul-de-sacwood frame, 2 story, vinyl sidingtaxes $3144 yearlyinsurance $800 yearlytenants pay water and electric (electric heat)currently fully leasedAmateur property management, one tenant manages propertyBack of the napkin calculations:Net Operating Expenses (Per duplex per month):Taxes: 262Capital expenditures: 100Property Management: 170vacancy: 85insurance: 66Total Expenses: 923 (11,076 yearly)Gross Rents: 1700 (20,400 yearly)NOI: 777 (9324 yearly)asking price: 185000cap rate: 5%

I'd love to hear your "back of the napkin" analysis on a property in Warren.

If it was just a random "Cocktail napkin" type offer.