Last year, it grossed $50.6K, despite one unit being rehabbed for 4 months due to a broken water heater.

The reason I ask, the $2,300 total is 9% of the gross scheduled rent.

Employee vs.

Its easy to be an employee of a company and think "I could do this."

Lenders won't use this same formula (they may use gross rents *.75 or some such) when underwriting your loan, but you should know this is likely close to what things will take in the real world.

And they are worth the money at $1,200 gross rents.

.- They get the next 30% based on gross rent- You get the next 10% based on gross rent- You split the remainder if any is left.This would almost guarantee that you get some money each month in exchange for your work unless there was a bad month in expenses.How are you negotiating capital improvements that may be needed during the course of the JV?

The bottom line is this. take gross rents, cut em in half and take any debt service out of that.

PURCHASE PRICE $2,100,000 PLUS 3%Multifamily 6 TURNKEY UNITS 6 X 2 BED 1 BATHBuilt in 1963Current Rents Per Month $11,904Market Rents $13,200ANNUAL SCHEDULED GROSS INCOME $145,488Total Expenses $46,106NOI $95,017MUST BE CASH………..

Sant SobhrajIt really depends where in Newark you are buying as that is unique market in its own right.Just a couple points of concern:Expenses are only 25% of gross income.