Purchase Info Square Feet (2 Units) 2,492 List Price $189,900 Purchase Price $171,750 Initial Cash Invested (down+cc) $51,340  Income Analysis Monthly Annual Net Operating Income $1,171/mo   $14,047/yr Cash Flow $527/mo  $6,330/yr Financial Metrics Cap Rate (Purchase Price) 8.2% Cash on Cash Return (Year 1) 12.3% Does this seem like a decent deal?

And note that I'm particularly interested in how we do this early in the process during some of our initial interactions...I think it's easy to show your value after doing a few deals, but it sounds like you never make it that far. 

Hi @Joe Fairless - two of the biggest mistakes/problems I see are (1) not recognizing that when you bring in investors and give them a percentage of an LLC that is actually a "security" and there are laws that need to be complied with in issuing the security, and (2) not addressing capital call provisions (or other financing options) in the event the venture runs short of capital after the initial round of investment. 

I know on initial loans they go to about 44%, do you know if it is the same on HELOCs? 

My initial response is why would you want to hide anything. 

My comment was referring to the initial post where it says" the power has been disconnected".

@Pari Thiagasundaram the $23k is your initial outflow followed by a stream of income in the amount of $950.67.

Ok, now that you have taken your initial step, below are some quick links to get engaged.http://www.biggerpockets.com/starthere http://www.biggerpockets.com/ubg http://www.biggerpockets.com/meet Setting up Keyword Alerts How to Use @Mentions on BiggerPockets 25 Tips for Real Estate SuccessREI can be very daunting, but, before you go searching for that 1st buy, please take a few minutes to bone up on the tips in link below.http://www.realestate.com/advice/buying-your-first-investment-property/ However, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

I'm looking for a duplex in the Tacoma, Washington area for around $190,000-$210,000 and was wondering, if I use an FHA loan about how much money would I need for closing costs and other fees after the initial 3.5% down?  

Instead of the full capital cost of the property in the denominator you use your cash outlay (downpayment plus initial capital expenditures to place the asset into service).