Jason: you will find the 2% rule operates in low income , low priced properties not necessarily in war zones but not in A or B areas.

They will usually help you and show you how their system operates.

The property is a 4plex with four 1/1 units in a nice neighborhood filled with SFR.Asking price: $120,000.Disclosed Operating expenses: - $80/month for landscaping.- Tenants pay water/sewer/cable/phone/garbage/electricityReserves I Calculate:- 6% for vacancy. ($96 per month)- 6% for repairs. ($96 per month)Estimated property taxes: $1,462/yr.Estimated insurance: $1,482/yr.Lending Terms:25% down payment = $30,000.$90,000 @ 4% over 30 years = $429.67/mo.Each unit currently rented at $400/mo.

This is not section 8 and is not operated like section 8.

We operate like any other business from 9 to 5, and by appointment on the weekends.

Somebody, at some point is shelling out a lot of money in this operation.

I'd suggest when yoy talk to your attorney about forming the LLC that you include, specifically all kinds of activities in your Operating Agreement and Certificate of Incorporation and not rely on that catch all description of doing all things.

This is a function of what you can sell to investors to get them to invest and what you will need to operate to produce them the return.

I view my lending operation as a fill in when conventional financing is not available or not available in the time frame needed.

The challenge is to avoid having the heating oil level drop so low that the stuff at the bottom of the tank enters into the heating unit, since this tends to cause trouble.Now, there are some other things a landlord should provide - manuals for how to operate any appliances, for example.