Blue Chips and the S&P500 companies have more cash on hand than ever, M&A activity is trough the roof, banks are well capitalized, P/E ratios are historically strong so again, why the 300 point swing today?  

As I mentioned above, there is limited data available here in which to frame the numbers you did provide (the water/sewer alone could be another $5K/yr) and we know nothing of the economic vacancy, tenant population, asset condition/obsolescence, level of performance or room for improvement.You should be underwriting a property like this to (M)IRR (with a time horizon to your exit) and weight the cash component of the return based upon the nature of the property and its location.   

I have a plan for investing and I have done much reading on LLC and taxes but I feel a good expert will be worth its weight in gold if they can help me get set up the right way in the beginning. 

Schedule E of my tax returns document the rent and expenses.

Pic didn't load last time.And I forgot to add:Thanks to all our meetup members who are also BP members:@Sandra Roddy, @Dustin Karns, @Paul Wurster, @Jacob Michaels, @Katie Kim,@William Strong, @Natalie Heo, @Dominic Jones, @James Wise,@John Kantola, @Robert E.

Independent Mortgage Brokers - Worth their weight in gold if they know what they are doing can be a huge ally to help you grow.

@Alexandra E AponteWelcome to the site.

There was severe smoke and water damage, and an existing sagging second floor from the weight of the water, but we knew that was able to be fixed.  

Can anyone tell me whether this deal is would be a good one? it doesnt meet the 1% rule but it seems like it doesn't need much in the way of rehab in order to rent it out. thanks, Scott 

Quite often what is illegal may actually be hard to find, as it is something not necessarily denoted by a law, but rather by a rule that the commission has that bears the same weight of law.