fourplex with gross rents of 23,760 (10% vacancy) Total expenses: Property tax 5,592, insurance 1,200, maint and repairs 2,400, legal professional 100, auto 200,electric 360, water 960, other (includes plow and lawn) 600 Total annual expenses 11,412We tend to be conservative in our numbers too.. we were planning to finance this property 25% down closing cost of 10,100 (prepay tax insurance etc + actual cost to close) total cash outlay of 38,850 So NOI would be 12,348 with a cash flow of 630 a month (7,555) annual Cash ROI of 19.45%Cap rate of 10.74 %GRM of 4.84Total ROI of 23.53% (includes appreciation and equity)The property is an a B neigborhood near the highway but with lots of competition from other rentals near by ( I think it would be difficult to increase rents) That being said this was a short sale property... they had 9 cash offers for above LP which was 115,000..

The building is 100 yrs old, what condition is the mechanical, electrical, plumbing, roof.

This is generally driven by the mechanicals stage in a 5-draw project3.

I am a 21 year old student studying Mechanical Engineering.

The mechanics of the deal?

Yet a would be tenant is not going to be able to repair it if there are serious mechanical issue and it can be a issue in no time or down the line.

Nathan - when I say "Gut" I don't mean "Tear out drywall and work on the mechanicals, then put the drywall back in"...I mean major framing work, dealing with structural walls having to be torn out/rebuilt/moved, moving around the foundation load points... major structural alterations.

If the tenant turns it to "high" and 64 degrees and it's 100 out, it's going to be more expensive than setting it to "72, energy saver, auto."

If not, this may be a great investment for her to hold on to.Another option, once her credit issues have been resolved, the loan may be used as collateral.Another option, trade the loan for something else ... not just real estate, you can trade for autos, etc.

One side is month to month the other is on contract till next yearMost of mechanicals are goodCondo park is non conforming and it will be in an llc partnership.