Quite a steal and they get snatched up pretty quickly but if you crunch the numbers, even with the high interest rate you get pretty close to cutting even on your rent (after you allocate X amount to unforeseen property costs)

@Richard Chang,  Your basis (read that gain) goes forward as an allocation into each of those properties.  

Even if there has been no vacancy, vacancy needs to be allocated as there will almost certainly be a vacancy. 

@Evan Polaski yes the cash that I’ve allocated is going into low volatility liquid securities that also generate some yield.  

Typically a cost seg can provide a ton of benefits to accelerate depreciation on pieces of the purchase that wouldn't usually be allocated out under normal circumstances. 

 $1800 (high end of rent range) - $1535 (hopefully mortgage includes full PITI) - $90 (5% vacancy) - $400 maintenance/cap ex - $180 PM (at that low rent point I am using 10% all inclusive) - $50 misc (bookkeeping, utilities that are not tenant responsibility such as slab leak, tax man, allocation of asset protection, etc).  

hey guys, quick update we finally got our four-plex and we are super excited. As I mentioned before it is my friend and her husband and I. Each contributed a third of the amount for down payment, since I'm single I'm ...

So do we want to allocate time and money to making sure people who are lazy, stupid, or both are comfortable?

His plumbing allocation is $44,000...my other bids are between $25,000-$30,000 all for the same work.

I probably have about $200k to allocate to additional deals if I have no other income coming in, which gives me runway for another 2-4 deals at 25% down + rehab costs.