So, that leaves $300/month in NOI (net operating income.)

So you will be getting $900 operating income on the townhome.

He is an FFL so bullets are half of retail too :) I carry +P loads in some guns and always hollow points of course.

Don't forget major structural changes, ie, removing load bearing walls.

So location is very important, and can mean higher rents.But any rent must be considered in light of operating costs and purchase price.Consider that most students rent for only one year and move on, so turnover is generally high.

This is after all operating expenses (taxes, insurance, prop. management, repairs, vacancies, etc.).

Here's another spin on the numbers you've reported in your original post - Gross Potential Income Rent: $325 x 24 Units = $7800 Utility Income: $48 x 24 units = $1152 Less Vacancy (7%) = (627) Gross Income: $8325Expenses, monthly: $4083 (from the annual expense figure you were given)Net Operating Income: $4242Debt Service: $4112(I happened to have a very good friend who's a multifamily loan officer in Dallas, and asked him this afternoon in a call what rates are available right now for a multifamily deal this small - he gave me 5.81%, 30 year amortization, 5 year call.

You're operating off of a different system from the buy/sell/flip approach.

If you deal with a small local bank you should not have any problems getting a load for 40k...

If you are interested, please contact me directly to discuss.Valley Agent Criteria:A self starter, but not someone who is ambitious enough to go out on their own… Knowledge of SF Valley and Thousand Oaks/Simi Valley (member of SoCal board) Someone who understands the rental market (acquiring low price properties that demand high rents) Experience with Winforms and MLS Investment property experience Computer savvy Home office with fax, email and a windows operating system, Outlook (not MAC) Someone with an existing book of potential clients Someone who knows the neighborhoods intimately in the SF Valley and Conejo Valley