Real estate requires being a self starter, tenacity, strategy, long days, high pressure, and personal sacrifice!

@Steve Vaughan   Steve from the lenders perspective its like pulling teeth to get people to the point.So I use an air traffic controllers com tactics.. when he knows your off your heading and maybe head straight for Mt.

I called the subs that I had brought to complete my first 4 deals and the heating and air man gave me a great recommendation.  

Banks have been under a lot of pressure to slow foreclosures.

Yep, it's true, and I can't believe I'm telling all of BP this--but I got cast on a makeover show and it's airing soon!

I have been in communication with a potential seller in Winston-Salem, Forsyth County, NC (2 hrs from where I live, so I would likely get a PM company).Details on the property/deal:Asking 26k (owner shared they purchased for around  22k, which I verified in county records)Seller purchased in Aug/1/14 for 22k and put in about 5k in repairs (new heat pump, air handlers, pumping pex tied into city line, new cabinets, countertops and tiles, new service panel, painted).Rented at $550 with Section 8 tenants in place (vetted single working mother with her 2 kids) until October.Seller moving out of state, so, motivated but won't sell under purchase price.Zip code 27105, west of University Parkway2 beds, 1 bath760 sqftBuilt in 1950Tenant-paid utilities1.265% tax rateMy thought was to offer 24k with seller paid CC (estimated around 2.5k).

Owner took out a mortgage in 2013 for $68k for the purchase of bothCondo association filed delinquent assessments on 3-24-15 this year for Floors:1, 5, 4 & 11 -- not sure why they did not file on some of the others - per my understanding the original developers are not paying either, however thats probably a moot point since it would be like attempting to get blood out of a turnip.Taxes per floor range in cost from $2700-$5100 -- the ones with lower assessments went and argued with the appraisers office once they bought out of foreclosureSpecials payable until 2023 of $4421 per floor  (once this is done - helps a bit with cash flow -- specials were used to change some windows, make street level improvements and upgrade the heating/air)Last Income statement I could get my hands on was from 2012 -- Expenses per floor at that time (doubt it's changed much except the owners association dues are likely higher to make up for the shortfall of the other deadbeats)Monthly expenses of $2500-3100I believe the mgmt company is ripping the condo owners off - charging $3575 per mo for the building for building maintenance, $3046.23 per mo for janitorial, $3300 per mo mgmt fee -- these are some big ticket items I could see cutting back on.So rough financials per floor per mo****************************************$3383      per mo rent (5800 * 7psf/12)   (676)     20% vacancy allowance   (643)     general/special taxes   (2600)     rough avg expenses per mgmt company - think quite a bit can be cut here---------------------------------------------------------------------------------(536)       rough loss per mo on a worst case scenario$4350 per mo rent (5800 * 9psf /12)   (652)   15% vacancy allowance   (643) general/special taxes    (2600) rough expenses per mgmt company - think quite a bit can be cut here---------------------------------------------------------------------------------455 cash flow per mo on a better case scenarioWhen you put pencil to paper this is not a good deal as it sits presently, however per my understanding - if every floor owner (or if the expenses for the building) were truly spread out over the 11 floors and all 11 floor owners (or one joint owner) was paying their share the monthly expenses could be cut quite a bit.  

That being said, allowed up to 20% for maintenance seems very cautious, unless there are a bunch of major ticket items that weren´t taken care of during rehab (i.e. roofs, air con units and electrical panels nearing the end of their lifespan).  5-8% for vacancies sounds fine for a competent property manager.We try to offer 8-9% net to investors purchasing our turnkey properties (usually in Pasco County), although the price ranges are in the $70-100k range and we make smaller vacancy and maintenance allowances than you do.At the end of the day, if you´re an out of state investor getting 6% for a property portfolio that requires little or no personal attention and you´re getting a capital gain, then things could be far worse. 

It seems like you just pulled a random number out of thin air.  

I am considering purchasing a property near the Air Force base in the Beaver Creek/Dayton/Xenia Ohio area.