Cost Assumptions Purchase Price $285,000.00 Closing Costs at 4% $11,400.00 Total Cost $296,400.00 Mortgage at 30yr/5% Interest /20% down $1,223.95 Monthly Expenses Monthly Rent $4,500.00 Electric $250.00 Water $200.00 Trash $100.00 Vacany Rate 8% $360.00 Maintenance 8% $360.00 Property Manager 10% $450.00 Insurance $300.00 Monthly Property Taxes Due $121.97 Cap Ex Reserve 7% $315.00 Total Monthly Expenses $2,456.97 Less Mortgage Payment $1,223.95 Theoretical Cash Flow $819.08 Cap Rate Cash On Cash 8.6 14.37

Saying you don't accept section 8 can get you into very hot water.

You can show a horse water, but you cannot make it drink....

Most companies want a pitch so water does not accumulate.

(In our locale, the developer does not pay to put the sewer/water/roads in...the city does and then levies a "specials" tax payable for 15-20yrs by the lot owner)I think I have found a partner though I'm not sure - he doesnt seem as excited about the opportunity as I do.  

Water/ sewer/ garbage is about the same cost for a 500 square foot unit as it is for a 3,500 square foot house, so utilities become a bigger percentage of total rent and costs with smaller units.Collecting rent is time consuming.

Hey everyone, Hope it's a good morning.For single and multi-family properties do you typically have a gross lease where your tenant pays a fixed amount every month or a net lease where your tenant gets the water, the heat, utilities, etc. and they pay it on their own?

So now this question is purely academic. 

. - City sewer - City water - I've got a written note from urban housing and development saying that I'm in compliance & would be grandfathered in.Is this a good deal?

City water was there and there was a septic.