Nevertheless, I'm being conservative with my planned expenses.Budgeting 8% vacancy, 8% maint, 10% capital replacement costs (roof's in good shape but about 15 years old, hvac systems are pretty old as well), and while the 4-plexes will pay for themselves and accumulate equity, the low cash flow has me concerned.

Although, the roof looked in decent shape so I wrote down the address.

Which sounds great, but can be a real nightmare when the city does a half arse job of doing it, cutting irregularly, getting rid of any flowers or plants you might have put in, not allowing bike racks in front of business.

., NORTH SYRACUSE, NY PARK LANE APARTMENTS 16 ONE BEDROOM APARTMENTS 32 TWO BEDROOM APARTMENTS RENT INCLUDES HEAT AND HOT WATER LAUNDRY ROOMS – 8 NORTH COLONY TOWN HOUSES 20 TWO BEDROOM, ONE AND ONE HALF BATHROOMS BASEMENTS WITH WASHER/DRYER HOOK-UPS TENANTS PAY ALL UNTILITIES WATER IS SEPERATELY METERED (TENANTS COULD BE BILLED FOR USAGE – NOT CURRENT POLICY) CONDITION OF PROPERTY: PARK LANE: ROOFS NEED TO BE REPLACED WINDOWS NEED TO BE REPLACED NEW BOILERS WERE INSTALLED IN 2009 DRIVEWAY NEEDS TO BE RESURFACED ALL APARTMENTS AND COMMON AREAS ARE IN GOOD SHAPE NORTH COLONY: ROOF WAS REPLACED IN 2009 WINDOWS WERE REPLACED IN 2009 DRIVEWAY NEEDS TO BE RESURFACED / REAR OF BUILDING NEEDS PAINTING FINANCIALS: OFFEERING PRICE $3,200,000 REPAIR INVESTMENT FROM SELLER $200,000 -SELLER WILL GIVE BUYER $200,000 AT CLOSING FOR ABOVE LISTED DEFERRED MAINTENANCE ITEMS PROFORMA P&L - MONTHLY RENTS @ 100% $44,000 LAUNDRY COINS $1,100 MONTHLY INCOME $45,100 EXPENSES MORTGAGE - $2,560,000 @5.5% FOR 25 YEARS $15,721 PROPERTY TAXES 9,700 PROPERTY INSURANCE 1,600 ELECTRIC & GAS (2013 ACTUALS) 1,700 WATER (2013 ACTUALS) 1,300 VACANCY ALLOWANCE – 8% 3,550 ALLOWANCE FOR MAINTENANCE 2,500 ($36,071) NET MONTHLY CASH FLOW $9,029 17% RETURN ON INVESTMENT OF $640,000 A few things to note.

Upon entering the dilapidated shell-of-a-home that needs to be gutted and cleared of debris, I find 30 year old insulation covering the floor of each room, warped floors, no ceiling, a leaking roof, a destroyed kitchen and an owner attempting shop his home for the highest bidder to hopefully get ARV for his hunk of junk.What I'm finding is a common theme since full blocks are being bought out and the natives being forced out to make way for hipsters, swanky little coffee shops, and inflated real estate prices.

There is a "free" 3x12 beam holding up the roof of my last house.Cool new toy James.

It's into this that I plug 'actual' repair costs, etc...The property I just purchased (for the purpose of hold & cashflow) had completed since 2010 the roof, windows, siding, electrical, plumbing, including hot water tank, new service from BC Hydro as well in the last 4 months a new bathroom, floors, fence and completely repainted.I know that the envelope (roof, etc..) will now last 25 years, the hot water tank 7-12.

Property is less than 15 years old; preferably a brick structure vs. a wood frame; with a pitched roof.

He's on the fence if he will sell (more about that below)...The roof is older and needs immediate replace of some shingles and eventually complete replacement, driveway needs repair/replaced, trim needs carpentry repair and painting, Estimated Exterior roughly $25,000.  

Unit has recent roof, and central ac and heat on both sides.Selling price $59000Owner will seller finance with 20 percent down, and the balance for 3 yr at 30yr ammorization at 5 percent.Total income $1150 per monthP/I $257 a monthTaxes $120 a monthInsurance, 50 a monthUsing the 50 percent rule, I see NOI of $318 per month.And cash on cash return of 31 percent.Obviously will get it inspected.But does this look like a decent deal?