Typically, your stabilized operating expense ratio (Total Operating Expenses / Effective Gross Income) should be between 35% and 50%.

The total cost will be $70,000.

I was into the transaction about $12,000 total ($9,000 to the sellers and $3000 in closing and carrying costs.) 

There are specific online sites that list for this subgroup of tenants.

(usually something more like five years)Will the total principal balance of the HELOC be $120K - $130K after renovations?

It's totally a number game... if you get enough leads, you'll be able to find motivated sellers and get properties under contract. 

But online listings show there are thousands more out there — which seem to be unauthorized. 

You can use a down payment as little as 3.50% of the total of the purchase price + rehab dollars, all in the same 30 year term loan.

-joeNet CF from investment 1yr= Owners equity+Gain on sale in y1+ Total return from operations for that year.For years 3 and 5 add the principle reduction from the previous years and voila.Exit price(his estimated sale number)- total purchase price= gain.

The issue is, based on her credit report and other known info, I added all the expenses: (car payment $722, debt obligation/month $1900, rent, renters insurance, utilities, estimated grocery, living necessities, her total **essential** expenses would be at least $800 greater than her net income.