Hello, I have been the VP of Operations, Director of Operations, Condo Division Manager and Property Manager for some of the largest companies in my area.

Section 8 housing is a pain as a landlord/management company - we TRY to steer clear of it for this reason.

I use to think PM cost 10% of gross income.

Typically I would account for the cost to turn a unit into the expense line items.

Given that it is reflected in the price most of the time, and therefore to buy a property in a lower school district will cost less on the front end, often require a lower level renovation: it all comes down to the numbers and which is going to yield the largest return for the least effort/headache.

Hi Vadim,There is a conventional/FHA program called a '203k rehab loan' which allows you to purchase a property and wrap in ALL renovation costs INTO the mortgage, so in your example above, the total loan balance would be around $70,000. 

Impressive Rent-to-Price Ratios: Average rents for 3-bed homes are about $800-$900/month, potentially yielding 12-15% gross returns.Economic Transition: While historically industrial, Bay City is diversifying into healthcare, education, and service sectors.Revitalization Efforts: Downtown redevelopment and community initiatives are breathing new life into the city.Strong Cash Flow Potential: Low property taxes and insurance costs contribute to robust monthly cash flows.Let's crunch some numbers on a hypothetical deal:Purchase Price: $75,000Down Payment (20%): $15,000Mortgage (4.5% interest, 30-year fixed): $304/monthProperty Tax: $100/monthInsurance: $60/monthEstimated Repairs/CapEx: $100/monthProperty Management (10%): $85/monthTotal Monthly Expenses: $649Potential Rent: $850/monthEstimated Monthly Cash Flow: $201Cash-on-Cash Return: About 16.08% (not including appreciation or tax benefits)These are rough estimates, and individual properties will vary.

A: Landlord has an obligation to provide clean water, suck it up and buy it.B: Hard water is bad for your plumbing, buy it hopefully to decrease future repairs.C: Water softeners, like under-sink disposals, ice makers, ceiling fans, love to break and cost you money.

We are going to be self managing our properties from out of state, and need someone who can show prospective tenants property, allow maintenance workers/inspectors in, and to hold our key.

If a Cost Segregation Study had not been performed on this $1,200,000 warehouse located in Orange, California that was purchased in 2018, it would have had first year depreciation of approximately $10,225.