I want to get some thougths as to whether im missing anything.Area: Nice little 'alcove' of multi-family properties, we drove the area and researched crime maps...area seems good and is growing economicallyPurchase:ARV (from comps): ±$110,000-114,000Purchase Price: $104,000Purchase Closing Fees: $5,800Estimated Repairs: $5,000Income:  $1,595Expenses:  $1,318.17Vacancy $79.75 (5%)    Repairs $79.75 (5%)CapEx $159.50 (10%)   Water/Sewer $80.00Insurance $85.00          Management $175.45P&I $418.72                  Taxes $240.00Cash Flow:  $276.83    ConC:  9%Cash at Closing (including repairs) $36,800Mortgage is conventional 30-year, 25% down, ±4.8%Has common water meter, so I'm trying to figure out how to push the water bill off onto tenants even though i must pay the actual bill...this might boost cash flow and ROI if i can do it.Thanks,

In Kansas City, the single family home prices dropped 20% in 2008 in many areas and the inventory and day on market increased dramatically.

Strategy needs to have a good deal and equity boosting rehab. 

Also, getting cheap financing can boost returns.

Are you buying completely vacant, 50% occupied, full but has rents below market and other cost savers to boost returns, or fully stabilized mainly for cash flow and hold long term with limited upside?

That can have a dramatic increase in property values.

In ten years this property will be paid off and your cash flow will increase dramatically.

I know I will be able to get $600 for the second side, possibly $630 with paint and floors or possibly even rent rooms separately being as each bed has it's own bath for $350 per room to boost cash just a little.

But you could do a 1031 exchange to avoid capital gains, which should provide the needed boost to make the needed down payment.

There are some obvious exceptions where populations are declining dramatically like Detroit but like Chris and Alex I find Memphis to be a great market.