Account Closed I disagree.  

Make sure you have enough of a reserve to account for unexpected expenses such as vacancy and major repairs.

Here's the numbers:Single family house in NE San Antonio. 1,456 square feet, 3 bed 2.5 bathPurchase price: $105,000Rehab; $20,000Hard money loan: $112,500Cash out of pocket (From HUD stmt):$12,500 (down payment)$2,250 (points)$385 (lender fees)$892.50 (title fees)$1,320 (insurance)-$2,001.34 (credit for unpaid taxes)Total: $15,346.16Actual rehab cost: $19,678.12Hold time until rehab and refinance complete: 98 daysInterest expense: $3,020.55Refinance loan terms: 30 year adjustable rate mortgage at 5.75% interest fixed for 5 years at 85% LTV and 1 point.Appraised value: $164,500Cash-out refi amount: $139,825Cash back in my pocket after lender fees, title fees, down payment, interest expense, insurance, etc are all accounted for: $5,389.50Now the place is rented for $1,200 a month and I figure I'll pocket about $200-$300 a month after expenses and mortgage payments and in the end, no money tied up in the deal!

@Jd MartinInteresting to hear you don't buy your own materials - I can certainly see the upside to that.I prefer to buy my own materials when possible (mostly from Lowes as they are the most conveniently located) as I like the perks of that amount of money being put on my account.

This benefit doesn't "get cancelled out" through an IRA or 401k; it's just that (unlike non-retirement account entities) these vehicles don't have any taxes to pay in the first place.

For the person who did not call or show-up to both scheduled showings and are interested in making a third appointment, can i legally tell them I am not interested in renting to them due to lack of commitment and/or accountability, or do i still have to show to them?

Go to your local rent court proceedings for eviction - you surely will find some referrals thereAsk the tenant to manage themselves - they can call for maintenance - and deposit their rent check into your account at the bank when due - give them deposit slipsTrain someone to do the things you don't want to do - pay them a percentage of the rent - there are lots of folks who would love to do this for youManagement takes a big bit out of your profits - be smart save the bucks - do it yourself - it ain't that hard.

That does not include debt service, but does include taxes, insurance, advertising, lost rent to to vacancy or non-payment, legal expenses, accounting expenses, capital expenses (roofs, furnaces, etc), and property management.   

Originally posted by Account Closed:Brendan Harrison , All you need to do is, on the purchase contact addendum, add the following term: 1.

@Aqil Dharamsey @Robert Young Account Closed Why don't you all come to NJ...