Check for slow drains, too, and run hot water down the kitchen drain for ten minutes to help clear any grease buildup.Also, check the number of toothbrushes to see if extra people are living there; check smoke detector operation (has TENANT removed batteries?)

Plus whatever it might need to be operable.

This is what it looks like.6plex Sales Price $325,000 Loan Amount $260,000 Interest Rate 7.125%Term in Years 30Loan to Value 80.00%P & I $1,751.67(This loan is through an Alaska housing program for which both this property and I qualify for.)Total Rental Income $57,600 Less Vacancy 10.00% -$5,760Adjusted Gross Income $51,840EXPENSESTaxes $4,584 Insurance $2,580 Utilities including Refuse/Cable $9,661 Management $4,725 Maintenance & Repairs $1,000 Replacement Reserves $1,800 Miscellaneous $1,000 Total Expenses $25,350 Net Operating Income $26,490 Total P & I $21,020 Net Cash Flow $5,470 = $455 per monthI know that the cash flow doesn't look that great with the property management cost but it is required to be factored in for this program.

So RE is so powerful because you get tremendous tax reduction benefits (depreciation, interest expenses, all operating expenses, and depreciate your capital improvements) all the while you've leveraged your investments, your tenants are paying your mortgage down for you, inflation is eating away at your mortgage, and you raise rents over time.

I have been on this site for a while and you certainly are correct in the fact that it is loaded with info.

Something that conceptually seems easier when we drew up the plans is a bit more of a task.We will be using Google Adsense and we won't be using Google Adwords....we have no use for that because our marketing/advertising is gonna be word of mouth/viral once we get the site operational.

Property #1Purchase Price $149,500 (Nov 2004)PITI - $1725 (includes $350 for HELOC, $250 for escrow shortage pymt (12months left), $125 Association Dues)Rent Received: $1195Net - -$530 (ouchhhh)And this does not even take operating expenses into acct (double ouuchhhh)...and a very high vacancy rate in Property #1...Positives: This areas has NOT seen a decrease in prices at all.

However, that certainly won't happen all at once and the operating expenses already include money for all of this.Good luck,Mike

However, it doesn't look to me like you've included the operating expenses in your calculation.

> Vendor discountsEspecially for those "one horse" operations where the handyman wants to get paid "right away", rather than allowing accounting to post payables in a batch, require an additional % discount for payments made in less than 10 days.