I would be intersted in what title people have to say but I would never expect there to be a payout from a title insurance claim.

., it would be extremely difficult for them to claim you took advantage of them as innocent homeowners – entity or not.

Eric Archer in the book says Originally posted by Eric Archer: Limited Liability for potential exposure to claims of creditors.

If there are other revenue sources (parking spaces, storage lockers, coin laundry, etc) you would add that in as well.From there you can figure 50% expenses to get your NOI.Your NOI divided by your purchase price is your CAP Rate.What you'll usually see is someone saying they're gross rents are $1,000 so their GOI is $48,000 for the Quadplex.Their property taxes are $3,000, Dwelling Insurance is $800, Sewer/Garbage is $4,000 so their expenses are $7,800.They will claim a NOI of $48,000 - $7,800 = $40,200 and then calculate a CAP Rate off that.This is a garbage calculation.

If you're as novice as you claim about closing transactions and reading HUD-1s, then how do you know what E&O insurance is for?

If you did that, I would agree you're not ignoring operating expenses.You can argue semantics all day, but if you state a cash flow and ROI numbers that don't take into account operating expenses (and doesn't mention that you're not taking them into account), you are by-definition ignoring operating expenses.I'm not saying you're acting unethically and I'm not saying that you're not running your company completely above board; but I am saying that -- assuming the OP's cut-and-paste of your deals is accurate -- your claim to not be ignoring expenses is inaccurate.

I still claim Texas as my 'Home' after being born in Dallas almost 40 years ago!

I have found that insuring things properly has saved me tens of thousands of dollars on claims during the last 8 years.

(This is my first income property analysis, so be gentle…LOL)Asking price- $130,000Down Payment $5,000 (3.85% I know not much skin in the game)Required maintenance $0 (I am not naïve enough to believe this, but haven’t gotten any concrete data to refute this claim (By the owner).

Should or can a tenant claim that the security deposit be returned (minus deduction) but with the percentage that a normal savings account acquired since it was money just sitting in the bank.Thanks