A buyer is given up to the say ten days prior to the anticipated closing date to deposit the full deposit.

This doesn't include closing costs.Mortgage 2 = $16,667 @ 12% interest only, 5 year balloon = $167 per monthUtilities - if Landlord pays utilities, need deposit for water, trash, electric.

However, his company has decided to move him out of state and consequently, he has decided to pay through Dec and have his deposit cover Jan leaving me incomeless for Feb-May.

Instead we provide them with deposit only bank cards so they can deposit their rent via a local ATM or bank branch.

If so, how do you handle the pet fee/deposit?

I manage both our SFH properties and while most of the time it is very hands off (depositing rent checks), when something does come up it can be a scramble trying to balance the job with trying to find a repairman (or make the repair myself), coordinate with the tenants, and go out to the property to insure everything is completed, especially when I am traveling.

So we approached a local bank & by depositing the monies in one of their managed equity accounts, we were able to secure a mortgage.

If they default or cause damages in excess of the security deposit, who do you collect from?

Larthsa,To figure cash flow, you list all of the monthly expenses, Principal and interest, taxes and insurance, add in any utilities, HOA fees, etc,,,then you need to figure out a fair figure for "reserves', this is a hold back amount for the hot water heater breaking etc,,,then figure in a percentage for vacancy (most will use around 5% if its easy to lease) if your going to have a management company manage, their fees,,then add,,,take the final figure and take it from your monthly rent, and you SHOULD have your cash flow (if I missed anything anyone please chime ini)If you want to figure your "cash on cash" return, figure out how much you will end up in the deal for in cash (deposit, rehab, closing cost paid in cash etc, all expenses you will pay in cash), thats your total "cash" in the deal,,now see what your annual cash flow from the property should be, divide that by the cash you have in the deal, and you should have your cash on cash.You can do this with a simple spreadsheet, it makes it very easy to look at deals, but remember, these numbers are only right IF the estimates you put in are right,,,including the anticipated rent,,too many new investors tend to under estimate expenses and over estimate rent.andy

I offered: - $65,000 purchase price - $5000 non refundable deposit - $700/m for 6 months and 3 month extension. $500/m going toward remaining balance. - wanted the option to do some renovation during lease period. the owner has countered with: - $70,000 purchase price (full list price) - $5000 non refundable deposit - $700/m for 6 months and 3 month extension. $100/m going toward balance - can do only cosmetic work during lease period, no structural work allowed.