It will be owner occupied for a minimum of a year and i currently own my own condo which i will rent out so the multifamily will be my primary home.FactsPrice range for the property is 300K - 500KMonthly payment for all properties i have explored with agent is 925-1230 (all the analysis factored in projected rental income and maintenance and most of them were already rented which gave us the rent needed for underwriting)Current cash saved for downpayment = 45KIncome = 80K (45% is 3000/month)Condo PITI+HOA = 720  (currently FHA)(market rental for similar units in my area is 1000-1200)Total monthly debt + Condo = 2000 (approximately 250 is credit card debt at 0% that can be paid off if needed but have been saving the cash for DP)As you can see i will not have enough for a 20% down conventional and cannot go FHA because my current place is FHA financing (the refinancing process would take too long to switch to conventional).

Hello BPs,I read an interesting article for pest control - and it come to my mind -  how many of you have a pest control service maintenance as a yearly line item maintenance on your rental properties?

That will not be the case if you buy as a short sale.Last question, if you buy it, lease it for 5 years, you have maintenance and repairs,  not knowing what you'll have in the property, or having an insured loss, can change your ability to profit, I'd think hard before agreeing to sell under its estimated MV or simply adding to your purchase price, neither price you mentioned has anything to do with the MV, so it may well look more like a loan or sham type transaction.

Basically, it's the long-term maintenance expenses on a property, averaged out.

I figured if the cost of prop tax, interest, insurance, and basic maintenance is equal to or less than what I’d pay in rent, then even I don’t collect any rent for a while, it’ll still be a wash financially.

Do you have a routine that you follow after signing a contract with a seller? 

Maintenance costs? 

All expenses for the  property - taxes, maintenance and so forth - are paid out of the IRA funds.  

If the appraisal does not support the value, do your numbers in the calculator again and then renegotiate the price or walk away.You need at least PITI, HOA, maintenance, and vacancy.  

Subtract from that, vacancy reserves, maintenance reserves and insurance...you're upside-down by about $300/mo, that's assuming the monthly payment is fully loaded and includes tax.