Thus, to ease operations and to prevent missing deadlines on the potential change of security deposits held, we make our sec dep equal to one month's rent.

And please don’t load up the site of your site with calculators and a million buttons!

You can't have multiple return addresses and recently I can't get a jpeg to load at all.

While I often disagree with MikeOh, his advice/analysis on this deal is close.When it comes to commercial multi-family units, it is very difficult to operate below the 50% OE.One thing that jumps out at me aside from the obvious "proforma" gross rents is the very low insurance rate.

A lender runs the numbers and realize the investment is solid and they will provide 70% of the purchase price.Now you run inspections, appraisals, legal fees, environmental reports....etc...etc and incur 100k in costs in due diligence.You still need to tie up an equity partner/investor for the remaining 30%.Would you be asking the investors for 300k (the 30% on the $1M purchase) or would you want to ask the investors to cover the 30% + the "load" 100k?

Yes, try the 50% rule at first and then save like heck until you are holding 6 months operating expenses.

The GP needs $10M, plus money for operations and rehab.Might be an opportunity to acquire properties from the GP pre-rehab.

Thats a loaded question.

It basically states I operate the entire community, all expenses and improvements are on my dime.

Some lenders operate in the same manner.