Remember, you are operating a business, so remember to always treat it as a business, not an extension of you personal finances or life.

@Rob K - you know that they can do things like hook-up utilities in an illegal manner, for example. :)

I understand the concept of OPM and utilizing hard money lenders to fund an investment purchase, I guess it all comes down to networking and getting to know the right people to actually make it happen, as is how it works in any field/industry.

Chris Masons the utility area was on the back porch, so in a comedy of errors the tenants had a bag of match-light charcoal laying near the dryer.

We have to stay on the contract or else HUD just puts the place back on the market and we lose our deposit and extension money.

Ok so I have been reading extensively for the past month or so on this site on how ot get started but I stilol have some question.

If you run the numbers on a very conservative side (10% vacancy, $1,500 taxes & insurance each, 5% cap reserve, 2.5% utilities, 10% repairs) you are looking at a NOI of $16,157.

But the security, lower fire risks, ability to survive weather (so long as it's not in a low lying area, LOL) and lower utility costs is a big plus!

If so then here is the cash flow:$14,940 :Annual Rent- $1494 :Vacancy @ 10%$13,446: Gross Income- $1,345: Repairs at 10%- $2,110: Taxes- $1,163: Insurance- $ 336: Utilities @ 2.5% (Covered for vacancy)- $4,953: Total Expenses$ 8,493: Net Operating Income- $8789: Mortgage Payment of $732.38 x 12 Months- $ 296: Before Tax Cash Flow.It is going to cost you $25 out of pocket every month to own this property - that is if everything goes well.

I've factored in Taxes, Insurance, Cleaning, Snow/Lawn, Turn over.Your expenses are missing a few things: Maintenance, Vacancy, Capital Expenditures, Utilities During Vacancy, Legal/Accounting, etc.