Is maintenance on a “solid” house cheaper than expensive HOA fees?

I'm planning to purchase an investment property and would like to understand the typical down payment requirements.

Since it is your first deal, some things to consider before acquiring would be:- Have you underwrote to account for unexpected expenses?

@Alan Johnson When wholesaling properties, we require a $2,000 non-refundable deposit paid directly to our company.

Wow that is way more expensive than I thought.

Many hard money lenders require 30-40% of the project costs as a down payment.

@Justin Garrett how much $$ did you save up or was no DP required?

High paying local jobs.Monthly cash flow: $306 /moIncome:  $2,250 /moExpenses:  $1,943 /moCoC ROI: 2.69%5-year annualized return 4.91%   Mortgage payment $1,394.53Rental income: $2,250/mo Expenses: $1,943Loan detailsTotal cash needed $136,739Purchase price$ 336,990Loan amount $206,990Loan term 30 yearsInterest rate 7.1%Monthly expense breakdownTotal expenses $1,943Mortgage $1,395Taxes $280Insurance $47Variable expenses  $180Fixed expenses $42Monthly Fixed expenses: $42 electricity $0gas $0water & sewer $0hoa fees $42garbage$ 0Other$ 0Monthly Variable expenses $180Vacancy $180Maintenance $0 (new construction)CapEx $0 (new construction)Management fees $0 (self manage)ReturnsNOI$ 20,412CoC ROI 2.69%Pro forma cap 6.06%Purchase cap 6.06% 

Managing a small renovation budget required careful oversight to stay within financial limits and meet deadlines.

It required a full gut remodel, layout changes, and probably a second story addition.