Will update as we make progress. waiting for electric and plumbing inspection from the city before we can close up the walls.

It needs a new furnace, updating of the electric (not the service, just wiring and outlets).

I just calculated as:[annual rents - fixed costs (taxes) - variable costs (avgs provided by seller for water, gas and electric]/(negotiated price + my fee)I dont believe im missing anything in calculating the cap rate?

I will be sure to get that in next week, Here is the info from the HUD-1: HOA Partial May 100.39 Title Insurance 252.00 Escrow Fee 150.00 Messenger Fee 20.00 Texas GARF Fee 1.80 eRecording Fee 3.00 Govt Recording Fee 24.00 Two Months Advance HOA 380 HOA Transfer Fee 165.00 HOA Electricity Deposit 100.00 This is nearly 10% of the purchase price of $12,000

These same programs are where the electric company would post any refunds they processed that didn't get delivered to the client, perhaps because they moved, etc.

There are already electric hybrids that use very little gas.More are slated for 2014 - 2015.If gas goes any higher and stays there it could be a death knell for suburban areas.More people will move to more dense urban living where they can walk and bike to work to reduce costs to survive.Used to there was a small class of the rich,a big middle class,and a small poverty class.Now the rich class is bigger,the poverty is bigger,and the middle class is shrinking into non-existence.Costs are going to rise and keep getting worse and worse.I want to be on the wealthy side.In many instances it is getting cheaper for me to eat out then buy at the grocery store.I can get a 3 course meal at Red Lobster for 7.99 and get 2 meals out of it.The restaurants are not having to raise prices at the rate of the grocery stores because alcohol sales drive most of the profits.If people think it is bad now it is going to get much worse.We need to stop depending on gas for transportation.It's a dead resource on it's way out.

How about when your tenants use auto jumper cables to bypass the electric meter to steal electricity.

I currently live their but we are looking to leave as soon as possible because its just not a place were I want to raise my son.I refinished the floors, replaced some doors, did some trim, completely remodeled bathroom, completely remodeled the kitchen, new fixtures, new electrical in the hallway, new drywall in the hallway, and the list goes on.

So when the bank's bill, or electric, gas, water, trash, etc come due it's on you my man.If you have two units and one is vacant, then those costs are shared. 

Big capital overhaul, upgrading HVAC, water heaters, electrical, roof, etc..