If there are other revenue sources (parking spaces, storage lockers, coin laundry, etc) you would add that in as well.From there you can figure 50% expenses to get your NOI.Your NOI divided by your purchase price is your CAP Rate.What you'll usually see is someone saying they're gross rents are $1,000 so their GOI is $48,000 for the Quadplex.Their property taxes are $3,000, Dwelling Insurance is $800, Sewer/Garbage is $4,000 so their expenses are $7,800.They will claim a NOI of $48,000 - $7,800 = $40,200 and then calculate a CAP Rate off that.This is a garbage calculation.

If you're as novice as you claim about closing transactions and reading HUD-1s, then how do you know what E&O insurance is for?

If you did that, I would agree you're not ignoring operating expenses.You can argue semantics all day, but if you state a cash flow and ROI numbers that don't take into account operating expenses (and doesn't mention that you're not taking them into account), you are by-definition ignoring operating expenses.I'm not saying you're acting unethically and I'm not saying that you're not running your company completely above board; but I am saying that -- assuming the OP's cut-and-paste of your deals is accurate -- your claim to not be ignoring expenses is inaccurate.

I still claim Texas as my 'Home' after being born in Dallas almost 40 years ago!

.* Regular inspections to check for leaks, ceiling damage, make sure window AC units are properly mounted, etc.* Other preventative maint, such as cleaning gutters

Some idiot left a (ball check) in place fully inflated on the 3" line.No wonder water form the tubs wasn't draining.Apparently there was work done to the kitchen 7 to 8 years ago before I bought it a few months ago.The plumber says the ball check is to check holding water and pressure test and then is supposed to be taken off and a regular line used or just remove the ball and cap the pipe.Instead he said many times dry wallers just goes over it before the plumber comes back and the plumber says screw it and leaves it.I just couldn't believe it but the plumber has found this before on other properties he has worked on.

Thanks, Jon, for the advice - Would the termite inspection report and the regular home inspection report be enough to determine all the repairs that may be needed ?

(This is my first income property analysis, so be gentle…LOL)Asking price- $130,000Down Payment $5,000 (3.85% I know not much skin in the game)Required maintenance $0 (I am not naïve enough to believe this, but haven’t gotten any concrete data to refute this claim (By the owner).

Should or can a tenant claim that the security deposit be returned (minus deduction) but with the percentage that a normal savings account acquired since it was money just sitting in the bank.Thanks

I transferred my properties from personal name to an LLC by doing a Quit Claim Deed.If you own your properties out right you should be OK but if you have a loan on them banks might have issue with the transfer because of guarantee.