Do I include those costs in the year 1 cash flows or do I include those with acquisition costs?

he thinks we will be overextended, and be treading on thin ice with our relationships...but i know u have to put in the offers to finally get one accepted...should i keep marching by myself, or what?

All of the negative cash flow and the rehab costs need to be considered as acquisition cost.

I see it like this:Rent: $3700/monthExpenses: $1665/month (reduced to 45% because you said the $3700 is after expenses)NOI: $2035Desired cash flow: $300Max payment: $1735Max loan: $260,784Rehab: $50,000Max price: $210,784So, your $230 price seems a little high to me.50% does include vacancies, taxes and insurance.Rehab costs are part of your acquisition cost.Yes, you will still be at 50% even after the rehab.

Example Stove for 350 dollars or whatever, then depreciate that over 5 years..My final and most important question...I understand that I can depreciate the rental unit.

Will this be the final bubble resulting in a collapse?

It took me 6 months of visiting P&Z and presenting to the council, but we finally got there, though it seemed impossible at times.

However, he did state that he makes his final decision based on what most of the houses in that particular neighborhood have, and what peoples expectations are.

I would not go as far as to say that flipping, rehabbing, etc is not investing, but Tracey makes some very valid points and I agree.Buy and hold is the single most reason of wealth creation and when done correctly. can provide not only the net worth aspect, but a passive income stream for life whereas flipping and the like require an onging effort to retain an income stream.I think it is the very best way to start, although I also agree one should do a few "flips" (which can be a wholesale deal, sell a contract, rehab project, etc.) to gain some capital for buy and hold acquisitions and reserve accounts.

Only when the final closing documents are ready do you need it notarized or have the seller there in person to sign the final contract