cap expense is a function of the following: size of structure, size of yard, quality of structure, quality of yard, cost of labor, quality of tenant, layout of structure (bathrooms have higher cost than living rooms or BR), etc. 

Plumbing Leak (Rental): Called because my tenant noticed brown spots on the downstairs bathroom ceiling (upstairs bathroom floor).

We plan on doing new floors, paint, appliances, painting kitchen cabinets white, granite counters, new light fixtures, new vanities in the bathrooms, and landscaping.

Both have newly renovated bathrooms and kitchens.2 bedrooms in Bayonne - no laundry in unit or building1 bedroom in West New York - combo laundry in unitNo parking for either.I can potentially live in either.

The tile work in the bathroom has cracked.

The condo's kitchen and bathrooms need quite a bit of updating before we can start looking for a tenant to move in. 

(Fyi, none of the below comps have pools).Comp 1: 2/1 1000 sq ft 1956 low to mid grade home in decent shape 4 DOM $210Comp 2: 2/1 900 sq ft 1956 low grade bathroom, great curb appeal, new appliances DOM unk $180 Comp 3: 3/2 1200 sq ft 1957 **distressed property** 30 DOM $180Located a few blocks away:Comp 4: 3/1 1700 sq ft 1925 very low grade, a little bit run down. 90 DOM $250The only other properties are across a very major street all going for about $320 for 2 and 3 bedroom homes with and without pools.

This is a quick local condo flip where you are putting in about 20-25k which included an all new kitchen, floors, paint, bathroom, etc.Everything went smoothly in this flip except it took 1-2 weeks longer than normal.

Utilities - Water and Sewer 58.33 (Confirmed from seller) - Gas and Electricity 208.33 (Estimating to confirm) - Garbage (NA for this property) - Cable, Phone, Internet 120.00 Pest Control (NA for this property) Accounting and Legal (NA for this property) Monthly Operating Expenses 1,085.00 Net Operating Income (NOI) Total Annual Operating Income 33,480.00 Total Annual Operating Expense 13,020.00 Annual Net Operating Income 20,460.00 Capitalization Rate and Valuation Desired Capitalization Rate 10.00% Property Valuation (Offer Price) 204,600.00 Actual Purchase Price 210,000.00 Actual Capitalization Rate 9.74% Loan Information Down Payment 21,000.00 Loan Amount 189,000.00 Acquisition Costs and Loan Fees 4,000.00 Length of Mortgage (years) 25 Annual Interest Rate 5.000% Initial Investment 25,000.00 Monthly Mortgage Payment (PI) 1,104.88 Annual Interest 9,361.50 Annual Principal 3,897.00 Total Annual Debt Service 13,258.50 Cash Flow and ROI Total Monthly Cash Flow (before taxes) 600.12 Total Annual Cash Flow (before taxes) 7,201.50 Cash on Cash Return (ROI) 28.81%The Official Details From Seller:Asking: $210,000.00Property DetailsStoreys: 2 Building Size:Lot Size: 1045 Square MetersBuilding Size: 2328 Square FeetEstimated Annual Taxes: 3093.00 (2017)Unit 2 Presently rented: Rental Income $900.00 /month (not including Power)FeaturesWater Front Property (In this small town)Flooring Unit 1 Laminate and Unit 2 Laminate, Vinyl and CarpetFoundation - Concrete with 4 foot walls for unit 2 apartment (allows for much natural light with large windows in all rooms)Heating - Baseboard, Electric,Other Inclusions - Dishwasher, Fridge, Stove, Blinds, Washer, Dryer in both units~ Taxes, Water/Sewer paid until the point of SaleOutdoor: Landscaped and water fountainRoof Asphalt ShingleServices Electricity, FibreOP High Speed Internet, Telephone and cable/satelliteWater and Sewer ~ Municipality System approximately $650.00 per yearRoomsMain Floor ~ Unit 1 1260 Square FeetKITCHEN / DINING ROOM 12’ x 15’LIVING ROOM 15’ x 15’LAUNDRY ROOM 6’ x 3’BATHROOM 6’-6” x 11’-6”MASTER BEDROOM 10’-6” x 11’-6BEDROOM # 2 (walk in closet) 9’-4” x 11’-6BEDROOM #3 9’ x 11’-6”BEDROOM / Office #4 9’ x 11’-6”DECK 12’ x 15’Rooms2nd Floor ~ Unit 2 Walk Out 1068 Square FeetKITCHEN / DINING ROOM 10’ x 15’LIVING ROOM 15’ x 15’LAUNDRY ROOM 6’ x 3’BATHROOM 6’-6 x 11’-6”MASTER BEDROOM 10’-6 x 9’-6”BEDROOM #2 9’-6” x 13”BEDROOM #3 10’ x 11’-6”UTILITY and STORAGE ROOM 9’ x 12’BABY BARN 8’ x 10’  

Working with a GC for most of the work on the bathrooms, kitchen, and replacing some of the windows and he had a very reasonable charge and schedule.Now the painters in the area are another story.