The numbers work out exceptionally well based on 20% down and conservative financing numbers: 14% CAP, 30% COC ROI, NOI of $45,900.   

Whether it’s a cosmetic remodeling or a deeper and more intensive renovation, you can turn pennies into dollars with the right updates to your portfolio.Your thoughts?

@Adriana Diaz Adriana this will work out because you're listening to the pros here.

Reason being the fair-market rent won't bring in enough to cover all the expenses and debt service, plus generate a reasonable profit.Your neighborhood is probably a bit too expensive to work out.

@Will F.In my area the numbers work out better with certain companies who provide the machines/maintenance who split profit with me as owner.No initial costs and not dealing with maintenance.

The FHA allows for much higher loan limits on multi-unit properties and your ratios should work out in almost any scenario given your decent income and lack of overwhelming debt. ;) 

If you find projects with rents far below market and high vacancy, it may be a deeply distressed property and it could wind up being a capital intensive endeavor.

@Justin Farman a FHA 203k loan is an option for someone wanting to have rehab work done to their property without having to pay for that work out of pocket.

You can also work out a discounted payoff with payment plan.Should you not feel competent to obtain the best deal yourself, there are plenty of people in the business who can represent you.

I'm stacking capital to weather any stormsI'm still buying properties, good deals at low interest rates are the name of the game in any market.I'm working on non-cash intensive efforts like marketing and brandinglastly, I'm selling off any under-producing assets I ownnone of this is recession indicator driven behavior as it's all pretty standard but my motivation is a bit higher based on how the market looks (crunched!)