I ran into this situation once also. turned out the house I was trying to find was built on the same lot as another house. the owner owned a large lot and built a second house on it and somehow the county wasnt tracking the second home!

One day about 3-4 months ago I ran across a YouTube video for talking about obtaining financial freedom through buy and hold strategies and I began researching this strategy.

Here are some preliminary numbers I ran: 260K FHA no repairs and current rents on left, 300K 203K, reno and higher rents on right: % Down Payment 5.00% 5.00% Down Payment $13,000 $15,000 Remainder of closing costs $3,000.00 $3,000.00 Total Due at Signing $16,000 $18,000            Mortgage Rate 4.60% 4.60% Length of Mortgage in years 30 30 Monthly Mortgage payment $1,266.00 $1,461.00 Taxes $386.00 $445.00 Sewer and Water $50.00 $50.00 Trash $50.00 $50.00 Heat/Utilities $ - $ - PMI $ 180.00 $ 208.00 Cap Ex and Ops $200.00 $200.00 Insurance $65.00 $75.00 Mgmt Fee $165.00 $165.00 Vacancy $132.00 $132.00 Total Expenses $2,494.00 $2,786.00     Unit 1 $500.00 $700.00 Unit 2 $900.00 $1,100.00     Total Revenue $1,400.00 $1,800.00     Cashflow/month ($1,094.00) ($986.00) Cashflow/year ($13,128.00) ($11,832.00) Cash on Cash Return -8.42% -6.57% I have not talked with the seller in detail yet, as I want to see if this is worth a deeper dive first. 

So I ran all the numbers from everything like the material cost to property tax and I'm getting a cash flow that is good, But I'm scared that I am forgetting something or not adding something and that the moment I buy into something it's going to go south.

I ran some analysis on this, and for a property with a ~10.5% CoC return at 4% interest rates, that will drop to ~8.5% at 5% interest rates: If you compound that with increasing property prices by say 5%, then the CoC drops to 7% .

I ran the numbers with some guestimates using the BP calculator and came out with negative cash flow of $100/mo. 

When I ran the report on a 15 year it did not have any.Grateful for your help,DavidView report*This link comes directly from our calculators, based on information input by the member who posted.

We thought about replacing it with a duplex-it is zoned R2-I ran the numbers several times; but decided it was better to let someone with more expertise enjoy that process.

I ran into an old friend last week and he told me about some apartments his company acquired and needs to sell.

I ran the numbers -ROI  potential 20%