I just did a post on my BP blog where I used the recent Pinal County Arizona tax lien auction results with my added data of Property Type to show how to analyze your competition for better results.

I did it a...

I am trying to evaluate the financials of an HOA community and I was wondering if anyone has a rule of thumb for cash reserves or any other items that could be a red flag to investors?

Answer this question: "...

@Lance Smith Initial analysis without looking at the property, it looks pretty thin , and i did not see CAPEX or property management in your expenses .

I have generally ignored these 50% rule of thumb posts of late because they turn into holy wars with commentators that have generally never operated buildings or done any sort of detailed financial analysis.

Looking for any feedback. Already under contract, just interested in what others have to say. Thanks.

50k PP and loan will be for 50k. I'm paying only closing cost.

Rent = 650 + 425 + 315 = 1,390

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IMHO the books/seminars actually give too much info - most of us don't need to know 300 creative real estate strategies when starting out, just results in analysis paralysis.

Roofs are 9 years old and hot water heaters have over half their life yet.I did the analysis to see if it was worth putting any money into the units and the margin is not large enough.

Which the numbers and expenses you will incur in selling your property can be broken down in CMA (Comparative Market Analysis) regarding the expenses you can expect (closing costs/inspections) to pay out of the sale price of the home and what you would expect to net after all expenses.

STRIKE TWO.With those two issues and my 10 day deadline bearing down, I decided to pass on the deal.If I want the house there has to be some price adjustment to reflect the new risks.I wonder if FNMA is open to some sort of tabulated cost analysis to help them make a more informed decision, I doubt it.

If using a PM, where the 50% rule applies, I get this analysis:$112K loan at 5% for 30 years has a payment of $601.24. 50% off the $1400 in rent gives you NOI of $700 and cash flow of $98.76.