Hi all,A San Francisco resident, I recently bought my 1st investment property out of state (an SFR) and anticipate buying future SFRs in a couple of other states going forward. 

However, there are four (4) heirs, not one so the secondary issue of post-death distribution is now complicated by your primary action.If you made a loan from your pension, for example, you could manipulate the payments such that the interest accrues at 5-10% with no installments.As to reverse mortgages, many folks never get the full benefit as they either oasis away prior or require relocation sooner than anticipated.

FYI, the breakdown of our property has a high management cost at 12% to start off because we are anticipating some significant work to get the property in the condition we want and quality tenants in place. 

We anticipate the actual value to be higher since the comps were all over the place.

Assuming that you pay down zero on the loan, list as a FSBO or a flat fee listing, and do not put more in than anticipated; this is how your numbers would work. $600,000 Sales price-$1,000 FSBO or flat fee listing price-$18,000 buyers agent fee-$5500 minimum closing cost-$7500 average concessions to the buyer on a house that price range-$560,000 your acquisition and rehab costLeaving you with a profit of about $8,000Personally, that is not enough profit to make it a good deal.

As long as I can anticipate those expenses (taxes or otherwise) from the outset and the formulas spit out a positive result before making a move -- I should not get too anxious about UDFI taxation - especially if it allows for leveraging, higher cash-on-cash, etc.Thanks!!

Post-rehab rent roll was anticipated to be around $65k/year, with a value of around $300-$325k.

I am anticipating 5-8 years time.The row home is a 2/1, 1,100 square feet with a small fenced in yard.  

Purchasing property based on Anticipation is dangerous.

(that's almost half the anticipated profit per Joe's numbers)So, if anyone else had done these numbers, less commissions, sounds like 8% profit.Cost: 470k - sales price of 540k, (assumed) less 5% commissions = 540k-27k = $513,000.513k - 470k = 43k.   43k / 513k = 8.38% (gross).$43,000.00 sounds like a chunk of money, which it is.