Assume a couple of months of vacancy, consider potential unexpected repairs (like HVAC or plumbing issues), and test the numbers with rents dropping by 10-15%.

I have a potential deal on the hook however, the property has been neglected by its previous and current owners and the current tenant isn't the cleanest.

Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).

All too typical park owner who took all the profit out of the park without reinvesting in the business then wants to sell you the potential he was too cheap to invest in. 

Attend real estate meetups and networking events in your area to connect with potential lenders and other investors.

Hi Eli, This is a creative and potentially win-win strategy that could work well in the right situation.

Hi guys, I have some questions about putting property into LLCs/protecting assets, any information is greatly appreciated: Question 1: my understanding is that an LLC needs to be actively conducting business in its registered state in order for the LLC protections to apply, otherwise a judge could potentially pierce the corporate veil.

The cost associated with insurance for not having 20% is peanuts compared to what you potentially can do leveraging your down payment. 

Some of the most expensive and difficult properties in the country (and world) to develop were vaporized into potentially un-developable lots.

Also this could be a potentially lucrative business partnership.