I ran my calculations on it and if I purchase it and put 20% down, I'm looking at a $167 a month cashflow after factoring in taxes, mortgage, HOA fee and costs that vary.

I had planned on going the conventional route for my first purchase.

Great post- so many novice investors get locked in to "it doesn't meet the X rule, so it's not a deal," or " I ran it throught the BP calculator and..."

But have much fewer ongoing repair costs.

Hi Katie, I ran those numbers through a personal calculator with the following assumptions:5% Cap ex5% Repairs10% Property Management$75/month for lawn/snowAlso, this does not include any owner-paid utilities or HOA fees. 

I decided on going the hard money lender route and since a majority (if not all) hard money lenders only lend to LLC's I was wondering if the LLC needs to be opened in my home state or the state that I am investing in? 

I also proposed doing interest only payments and he said he may be open to that as well.Obviously the owners expenses are missing a lot of things so I ran multiple scenarios below:This assumes Interest Only payments on a $1.1 million note.50% expense ratio (I/O payment) cash flow/month = $1887, COC return = 22.6%45% expense ratio (I/O payment) cash flow/month = $2397, COC return = 28.8%40% expense ratio (I/O payment) cash flow/month = $2906, COC return = 34.9% (I believe this will be the closest to true expenses with cap ex, vacancy, maintenance, management fee (although I will self manage)).35% expense ratio (I/O payment) cash flow/month = $3416, COC return = 41.0%Now assuming 30 year AM on same $1.1 million note:50% expense ratio cash flow/month = $156, COC return = 1.9%45% expense ratio cash flow/month = $666, COC return = 8%40% expense ratio cash flow/month = $1175, COC return = 14.1%35% expense ratio cash flow/month = $1685, COC return = 20.2%The market this is in is a cash flow market with minimal appreciation, so that could definitely come into play in 10 years when I have to refi with a bank, especially if I am doing interest only payments.

I ran it back 2 years from today, followed by the 2 years prior at about the same time of year to cross reference. 

There are some issues with the basement door and would like to get 1 or 2 handyman whom you guys use in Delaware for ongoing issues and repair.Buyan

@Tyler Baker it depends how far south you are planning on going into Kentucky?