I do have each person on the lease.The type of tenant base this is however is that say a mother,son and daughter live there.Her sister approaches the mother and says let us move in and we will pay 250 towards the rent as we can't afford a place of our own.Upon our bi-weekly inspections we find that the sister and her 2 kids are there.Now you have 6 using the water etc.The reality with apartment buildings of this age and tenant base is that families consolidate to save costs.They might be renting an apartment elsewhere for 600.Job hours are cut and they move in with sis and pay 250 and save 350 a month.The extra usage of water is what I am concerned about.I do not condone extra people there but want to control extra water usage.

Unless it is extremely difficult to find anything closer to your hometown.

The paperwork is not hard to figure out on your own--I've rarely seen anything in an addendum that I didn't understand (but they are boring).As long as you have an inspection period, the only risk is your inspection money if you decide to back out.Having said all that--I haven't read this entire thread, but I don't understand why your low offers would suddenly be more enticing to the listing agent in your town if she now has to split a commission with your buyer's agent.

Your contractor or someone knowledgeable should be able to get a good idea from a visual inspection.

I contracted the property for 100k and after the inspection I negotiated it down to 97k.

Nor have I inspected the property.Its in a college town & will rent for ~ 1100 with full occupancy.ARV shows at around 150000kWhat I would like to do is Remodel the first, get it rented out, then build two 3/2-3/2 duplexes on the other two lots using construction loans.

We're looking at houses and my boyfriend has experience in construction but not termite inspection per se.

Unfortunately I think you will find that section 8 cares more about their tenants than the landlords.I have gone the route before of section 8 violations and the case workers do nothing.You simply have to evict the section 8 tenants.Mine not in compliance went voluntarily.It was a case of one great tenant next door had a small child care facility of watching 4 to 5 kids.The section 8 next door that were inherited tenants I received upon inspection had a pit bull and a rottweiler.They were told that was a violation of their lease.We evicted and they said they had gotten rid of the animal only to find they were hiding it and was back again.The parents dropping off the kids were scared of the pit bull for the day care next door.This tenant also had a portion of utilities they were responsible for after the voucher paid.They went round and round not understanding why they paid the difference etc.I can tell you when you look at section 8 it is great as long as you pay attention to the voucher.If you want to rent for 800 and the voucher is for 500 then don't do it.They simply will not make up the difference.If it's only 50 bucks they have to come up with then they can usually pull it off.Section 8 inspectors are real picky on all the things they want fixed before you pass inspection.If a tenant wears down a property heavily each year and you have to put a ton of money in to pass inspection each time that is a consideration.Don't be quick to evict the other regular tenant.You have to treat them like a person with a mortgage falling on hard times.

If you have little experience and no assets probably closer to 50/50.

You haven't factored in future vacancy, rent loss, capital expenses, etc. into your equation, which would likely take your expense ratio to somewhere closer to 45-55%, or earning about $1000-1200/month before debt service.Speaking of debt service, you mentioned a $75K loan, but nowhere in your post have you mentioned your debt service payments -- they will detract from your cash flow and cash-on-cash return.Not saying this is a bad deal -- I just don't think you've analyzed it correctly to determine how good (or bad) of a deal it is).