They have reasons for their rules which I question all the time.Believe me I have had shouting matches with board members at the condo development .I built a 40 unit condo community starting in 2005 of beautiful 3-2.5 units with attached garage selling for $325,000.

These are 5 attached 3 bedroom townhomes and 4 individual SF homes all on 1 acre of land.Please let me know if I am forgetting anything.Rent: $8,875.00Units: 9Maintenance $1,331.25Vacancy $443.75Property Manager $621.25Insurance $484.47Utilities $150 (calculated at 85% recapture on RUBS for water, gas and electric metered separately)Landscaping $300.00Advertising $73.96Ongoing Capital Expenses $887.50Taxes $702.63Purchase Price $385,000.00Rehab $78,100.00Holding Fees $17,750.00 (2 months rehab, some will rent sooner)Closing Costs $3,500.00Cash out of Pocket $484,350.00Additional ideas for extra income:Pet Rent - $10 per month per pet (the property has a huge green space for pets that I may actually fence in as a "dog park")Appliance Rental - $25 per month for w/d, $15 per month for refrigerator (I actually ran across this idea looking for my son an apartment recently)Property also has a big playground that I may remove -- not sure yet.Please let me know if there are other expenses that I am not calculating (hopefully they are small :))

Today they told me 25%, but it used to be 20%.The mortgage rate for this mortgage is residential, between 2.5 to 3.7%I will be probably looking at 6 Plex in rough shape with higher cap rate since I like to renovate instead of paying for others renovations.thanks for the tip about cambridge, I actually saw a nice 5 plex for 400K, with something I really like: 2 bedroom apartments. thsnk youFilipe

Not too sure though.Units downtown (condo) in loop do rent out a lot faster when rennovated and for much higher price so it all depends on location.

I like 2 or 3 bedroom.

I know that house will need some work after she moves out, especially because she was smoking in master bedroom at one point (stopped after I found out), so I might have to spend money to get the smell out among other things.

In most markets, when the price goes up, so does the rehab budget, therefore percentages should stay the same, as any surprise major work like a new roof is going to be more expensive on a more expensive house.But in the market where I live million dollar houses can be small 2 bedroom bungalows that needs the same amount of work as a $200,000 house a couple of hours away.

Finally, as an example, I was able to negotiate a 17k deliquent HOA balance down to 10k payable at closing for a short sale condo. so that was a 40% discount...

I am trying to sell the condo I own while it is occupied by a renter.

Purchase price $60K (3 bedroom/1ba)Mortgage of $48K (7.125%, 30yr)Taxes $2015Insurance $600 per yearMaint/Expenses approx. $1500 per year (could be less, property is in good shape)Rent would be at least $900 a month (property is currently vacant, tenant could potentially be signed to a lease prior to closing)NOI - Gross rents $900 - Operating expenses $343 = $557 Cash Flow - $557 - $343 (mortgage) = $214Thanks,Aly