If you're looking to improve your results, I highly recommend it.

It's far from the 2% (or even 1%) rule, though I kinda doubt that's possible in that area right now.Purchase price: $179k + $4k or so in closing costs. $120k mortgage at 2.75% (5/5 ARM).

Goals -Refinance soon-  I planned on going 15yr with the lowest interest rates I can get with a credit rating about 740- Yes I feel more comfortable getting stuff paid off quickly rather then having lots of 30yr loans-Build 20% equity with improvements prior to refinance-No more PMI !

Monthly Income:$1,150.00Monthly Expenses:$750.72Monthly Cashflow:$399.28Pro Forma Cap Rate:7.32%NOI:$9,156.00Total Cash Needed:$30,000.00Cash on Cash ROI:15.97%Purchase Cap Rate:9.16%Total Monthly Income:$1,150.00x50% for Expenses:$575.00Monthly Payment/Interest Payment:$363.72 Total Monthly Cashflow using 50% Rule:$211.28

I was just watching the free videos about the 50% and 2% rules and something didn't quite make sense.

@Andrew Lomakin,The rules for tax liens and deed vary from county to county and state to state.

Always do the math analysis and try to look at your prospective properties before you make an offer or at least have a clause that will protect you for some time (usually about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.Right after you close on an improved property get an insurance policy that will protect you if there is a loss.  

The amount you originally paid is irrelevant if you can show the current value is comparable to what is selling today.Emphasize the value you added to the property with the improvements you made. 

Congrats, I am surprised to see the number of improvements for $5,100.

Dear all,Need guidance around Real Estate Professional exception for passive loss rule when managing multiple rentals.