My experience (in buying several severely mismanaged properties) is that the owners will likely have equally mismanaged tax records (eg; all investment activities lumped together, etc.).My due diligence for an area that I'm "blind" to (have never worked in before) would roughly be as follows:-Speak w/ local realtors & property managers to determine appropriate market rent for all units-Get copies of all leases to verify current rent roll-Speak w/ my insurance agent, get appropriate quotes-For any utilities I'll be responsible for, find out local market rate for electricy/gas/water & sewer and use what I know to be "average" consumption for those services-Use estimates I know are sound for maintenance/capex reserves, etc.

Also it gives them a feeling that they are in control if how much their rent raise is, since it it based on consumption of water by them.

Hello everyone,

My name is Jeff. I am currently working on obtaining my real estate license. I am interested in fix-flip, buy-hold, and rental properties.

Most professionals (docs, lawyers, etc) are in the high-consumption UAW (under-accumulators of wealth) camp with no thought  to what is kept.  

I mean, it's only a SFH, and water consumption isn't that great.

There is a wealth of information ready for consumption in this community.

If my goal is cashflow it takes a really long time to recoup that 20% at $200 to $300/mo cashflow, so I'm entertaining creative strategies to minimize the cash tied up in each deal.By the way, thanks for not sugar coating anything.  

I'm now committed to minimizing my consumption and maximizing my savings to achieve independence.  

I am trying to help him find a SFR in Sugar Land. 

Ken: A little weed doesn't hurt much if it was for self consumption and not distribution.