I now need to develope it and it is costing a little more than I thought due to the state DOT dumping a bunch of stormwater on it from 3 ditches for 1 mile each and 7 lanes of highway for 1 mile each.....this was not disclosed to me by the seller nor was there any easements for drainage recorded on this property when the highway was reconstructed 14 years ago adding these ditches and additional lanes of roads.Once it is developed to level buildable land, I will be selling the other piece for a decent profit but need to spend more than anticipated to take care of the drainage issues.  

In addition, we anticipate seeing some folks from the hurricane Erma area coming this way over the next couple of years thus increasing the need for inventory.

I personally average out the repairs I would expect over the year based on how old items are within the house and understand that I cant anticipate what month each item might break down, so it would be foolish to take a single months expected repair cost as cashflow, when a repair could come up in november for 900 (I had a HVAC compressor need to be replaced) when I budgeted 1000 for annual repair costs.

So doing all your due diligence in anticipation is the way to go.

I am aware that I can follow suit to secure any damages but I don't anticipate ever being able to recoup money now...By the way, the tenant had perfectly good credit and the former landlord gave me a good reference.

I'll just speak from the point of view of the loan originator:with 1-4 units its mostly about the min down payment needed and the debt income ratio which in essence is the entire mortgage payment/tax/ins/assessments and other obligations or net obligations divided by your gross monthly income, the ratio DTI.with 5+ multifamily its about the 5 C's which is an article in and of itself but its similar to business lending in that the principles are all the samewith 50k, and beginning in real estate it would be near impossible to obtain apartment unit financing they will want to see experience, perhaps case studies of properties you've partnered with or have done and succeeded and your business plan on the subject property in question, adequate liquid reserves probably 12+ months in your experience bracket, funds for down payment and closing and funds for the anticipated renovations, repairs you're going to do as well, your exit strategies lined up, a review of your character/credit report or references from experienced individuals will help.Another way is to use other peoples experience by partnering, money, or other resources to obtain what you need in the banks eyes.

Akash Y.You should meet with a {Canadian} accountant experienced in cross-border business or real estate before you purchased any property in the U.S.A.LLCs do not exist in Canada and the CRA is apt to tax the income differently than you may anticipate.

@Derek Daun, @Matt Inouye I just ran into this when we refinanced our current primary in anticipation of turning it into our next rental once we finish the rehab on our future home.  

I do not anticipate high appreciation and the cash flow is a few hundred a month at best. am I looking at it the wrong way?

I've already re-done the kitchen and bathroom, and I don't anticipate much more immediate neediness (I know, ha!