Purchase price: $140,000Closing Costs: $5,000Downpayment: $28,000Loan amount: $112,000Rate: 5%Term: 30 yearsPayment: $60150% of rents: $1,000Cash flow: $399Cash flow/unit $99.75Yearly cash flow: $4,788Cash on cash return: 14.5%Asumming I can negotiate for a $140K purchase, using the quick and dirty 50% rule that would leave $1,000 to service the mortgage payment with $399 cash flow or $99.75 per unit.

Wayne, I have actually had agents just give me the code before, but I understand it is not ethical, maybe even illegal, for them to do so as what happens if you are injured on the property or leave a door unlocked and damage occurs as a result?

Beyond the obvious quality of construction and code compliance issues, how do I ensure the tenant doesn't rip out his whirlpool tub when he vacates and leaves me a mess of wires and plumbing?

If you remove the coin from the entity entirely, then I suppose this question isn't for you.Option A: Receive cash-flow and let it pile up, leaving it as liquid cash (current assets), immediately available for CAPEX & so forth.

i lived in apts before. never did i touch the wall with nasty fingers while putting my shoes. they know they have to leave it the way they found it. of course they would not install a new carpet, but at least take care of the brand new stuff i gave you!!

Otherwise, the tenant would have no incentive to leave the place in decent shape and landlords would try to rehab units using claims against the policy.

However there are more than one way to skin this cat.

I did much of the non-technical work - always leave plumbing/electrical etc to the pros.

I figured this from my own research of other properties in the area, the current owner who has rented the property for 12 years, and a friend who owns two SFR's on the same street.So that leaves me with $325.42.

I wouldn't leave it to the tenant to fill out this very important piece of information/court evidence.