We purchased a 3 bed 1.5 bath home, 1500 square feet on half an acre:Purchase price: 66K; 20% down paymentRent: 850.00PITI: 390.00Vacancy: 10%PM: 8%Repairs: 10%Cap Ex: we have a separate account set aside for this that we fund ourselves and contribute to monthly.Rehab costs: 3K (paint, flooring, cleaning)Monthly cash flow: 222.00Cash on Cash return: 16%I'm happy to have our first deal done.  

Here are my thoughts based on some avg #s$1980/2 = $495/mo x 4 units1 bed/1 bath units typically rent around $400/mo so my initial thoughts are how did they get almost $500/mo for these.Lets say you get $450/mo x 4 = $1800/moProperty Management - $180Taxes - $200Insurance - $100Water/trash - $200Vacancy - $180Repairs - $180Cap Ex - $100Total expenses -  $1140/moThat leaves you with about $660/mo before any mortgage etc....

Also - when calculating your cash flow, be sure to account for property management costs, vacancy, maintenance, and especially cap-ex. 

Hey Mark, if you had other work prior to your recent job, then just find a common thread between the two jobs (ex. they both are computer related, finance related, whatever).

(Ex.

Ex.

@Rod JosephYour post states "Mortgage Expense" is that supposed to mean that monthly debt service is $2,600 or is that Mortgage + Insurance + Cap ex + Management + Repairs?

Five years later, my (now ex) wife and I purchased a bed and breakfast that came with a second home for the Innkeepers (us) to live in.

It is seasonal, but still steady just different clients, ex.

We have been using creative financing options to this point in order to maximize opportunities and due to limited financial resources of our own.We have what seems to be a great opportunity to buy a triplex in Salem, Ohio via seller financing; (my husband and I analyzed the numbers, taking into account cap ex, possible vacancy, management, etc. and it is a great opportunity numbers-wise.)