On top of that the funds needed for the repairs and operational expense will not be insignificant.

Portfolio lenders typically follow the same (75%-80%) rule and consider the additional income from your properties and perhaps relax on the debt to income ratio and as long as the deal makes sense and generates positive cash flow.  

Hi, I just started using the real estate site Hubzu and need advice and hopefully some explanation to how they operate.

- TOTAL OPERATING EXPENSES: $522K, NOI: $445K, Debt Service: $240K, CASH FLOW: $200/door/month.So...this is based on potential rents which means I will have a year or two of transition and potential CAPEX expenses.  

We have raised the income by over 10% and slashed the operational expenses.

I have an LLC, but have not field for my tax ID yet (operating agreement is in the mail).

Derrick,There could be a couple of reasons for this;- Current owner purchased via taxes / distress / etc. and received no operating information.

Other items to consider:- Income or loss from operations in an OZ is taxed normally- An OZ is a lower income census tract designated by each states Governor.

LLCs also allow for a dynamic change to the operating agreement between the members of the LLC and also they can spell out the responsibilities of each member.

They can do this because they only operate in markets where a pile of rubble will sell in a couple of days for over asking price.