Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Hey, I could use some pointers on whether or not I am doing analyzing the cash flow on properties correctly (or whether or not I'm even on the right track).I'll provide an example property: 3 bed 2.5 bath townhome listed at $265,000I project that the rent should at least be $2050 (when renting rooms individually).If I offer a maximum of $250,000, then 250,000 x 0.08 (targeting the 0.8% rule) = 2000 ... so this meets that rule of thumb, now I can continue evaluating.Calculating NOI:Scheduled Rent.....2050Vacancy (5%)..........(102.5)HOA.........................(174)  [Covers lawn, water, sewer]Repairs (5%)............(102.5)Taxes........................(170)Home Insurance.....(93)Electric.....................(150)Prop Mgmt (11%)...(225.5)CapEx (10%)............(205)-------------------------------------NOI: 2050 - 1222.5 = 827.5 Income - Mortgage = 827.5 - 1264 = -436.5 Cash Flow Per MonthQuestions:- Am I analyzing cash flow accurately? 

These led to skyrocketing values, artificially so.  

My mortgage, water and sewage bill and lawn care are getting paid from the rental income and I’m still making a few hundred dollars in passive income.

Fair Market Value gross rent less vacancy less bad debt less all operating expenses (taxes, insurance, utilities, lawn care, management, maintenance, supplies, permits, etc).

After the last 4 plex purchase I resigned from my law enforcement job (it was the plan all along) to focus solely on the lawn care business and the investing.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

The home values have increased (may be artificial), but keep your eyes open.

If you get a professional landscaping company to do the snow/lawn, then $100 per month is not over estimating.