Converting some of the downstairs into a master bedroom with walk in closet and ensuite, 50 % new roof, new floors throughout, paint, finishing a sunroom, refinished kitchen and baths.ARV: $189,000 Comps: #1 - 3/2, Same style house with 350 extra sq ft (mine will be similar with finished sunroom) no big garage.

My figures are coming out to 17k for whole house, 17k for plumbing, ( both from the contractor as estimates ) as for windows 10-12k, count find asbestos removal estimate yet, Interior of both apts will need to redo flrs and linoleum as well as kitchen cabinets - Its will also need wall paper and paint and fix any bad floors or ceilings or - each apt is approx 1400 sq ft the house is in a desire-able neighborhood and has much carisma with a 3 car garage and possibility of an extra lot.. its a big project but I have to figure the repairs cost to a close estimate so i can make an offer - they are asking 85 and arv is 135-40 whacha think ?

If I had an extra thousand bucks to wipe my butt with I might try it.how about pulling out of Afganastan too?

The answer is always the same (or should be) and that is, YES, BUT IF you buy right, know your market, and have a plan and means to execute it.The "R" word is a common word that comes up, the truth is, risk can be mitigated with the right strategy for the area and the right price for the investment.What do you want to do?

With that, you should have better luck with the 7.5%, but when you consider commissions to the security brokers, start-up costs, and other marketing and accounting expenses, your likely going to pay an extra point or two anyway.All of the above are merely based on my own experiences with investors who are known to me and who are accredited.

Not that the investor is concealing the truth but rather what generally happens is what the investor is actually making from a month to month perspective is not reflective of what the tax preparer has displayed.

I agree with Jason, the extra time between fully executed adendums and a 3 day inspection clause should be sufficient to evaluate any large (potential) problem you are worried about.Don't make any habits of backing out, but in such extreme cases where a large issue was identified after offer made, you certainly have a right and reason to either re-negotiate or back out.

My initial plan was to use the extra $6,600/year to pay down the 4.62% mortgage on my 1st property.

You want to purchase hazard insurance for your rental property with a liability rider anyway, so the extra cost and hassle of an LLC may not really give you any more "asset protection" than the insurance policy already provides.There is no one-size fits all answer to your question.

I like to keep my skills up by negotiating on EVERYTHING, I will go into a Mcdonalds and get them to throw extra food in just by asking.