Failure to operate correctly can compromised the LLC's legal standing.

Hi, I need help analyzing this shopping center.5 unit Shopping stripAgreement price: $1,100,000 (negociated and agreed upon)Down payment 20%: $220,000880,000 30yr @ 7%: $5,854.66/mo5967 sq. feetOperating Expense: 1243.11/moProperty Tax: 1754.56/moOther Expense: 183.02/moTotal: 3180.69/moGross Rent: 11,309.73/moProperty mgmt: 3%Net Operating Income: $94,622/yrIncome statement provided by property management company.Does a property management company provide accurate income statements?

Can anyone recommend a basic property management software program for a relatively small, home-based operation?

I don't have a real estate investing club in my area (that I can find) and am looking forward to virtually connecting with other investors.I have been mentored by an investor in the West since Jan 07 and have met another investor in my town (Burlington, VT).

Not sure how constitutional it would be to outlaw two perfectly legal business contracts, a lease and an option, just because both were between the same parties.But remember this is the same legislature who tried to put through the "dirty cheerleading" bill and did pass the legislation to put in effect the largest steroid testing operation in the world!

I plan to hold into the property for long term...at least 5 years maybe even longer...every $ hurts out of pocket :) lol, however I guess, the extra money will not strap me for cash but thereotically I will be able to acquire less propeprties with my available funds, theroicatically in the operative word, becuase practically I will need at least 3 to 4 month between each acquistion to do it right (find a deal, close , fix it a bit and rent it out)..

I've read everything I can get my hands on regarding this, and it's clear that Sub2 can be both completely legal and ethical.From the standpoint of the seller, as long as (1) they understand how the process works and (2) they understand the potential risks involved (such as the buyer dropping the ball with payments), it's a great deal for both parties.I say "can be" because I also know that many so-called "real estate investors" are indeed dropping the ball by trying to do Sub2 with virtually no money, no funds to fall back on if they need to handle the payments themselves.

The value is based on the net operating income.

They certainly CAN be problematic, especially a disposer, but if you provide clear, written, instructions on basic operation, AND make sure the tenant knows they will be responsible for the cost of service calls caused by misuse, your problems will be minimal.

They obviously operate where there are few records.