It is:Gross rents x 50% = Cash Flow before debt service (the 50% includes taxes, insurance, property management, utilities paid for by owner, maintenance, vacancies, etc).Once you have that number, subtract your debt service payment (principal and interest), and you will have the cash flow.Without the actual rents or your loan details, it's hard to provide an accurate example.

Also, read the Ultimate Beginner's Guide, it will give you an idea of how you can get started.Once you have been around and utilized the resources here, you can start formulating a plan.Good luck and let us know how you can help!

You are counting reserves and utility deposits as an expense.

You need closing money, down payment, money to start repairs, buffer money for repair overages, insurance, points/interest, utilities ..

Remove the utilities and you may be at $100/mo.If the owner pays maintenance, this is no deal.

We also have lien issues for utilities - I get around this is in one of two ways depending on the property:1. charge a $40-$50/mo utility fee per person in the unit.

I've been looking at some 3 and 6 plexes and they have extremely high utilities costs.

Not a lawyer, but I would assume there could be legal issues if I went in there working, turning it over while they still had rights to be there, especially if they were paying utilities through the 30th.

.- Are utilities included?

I have a tenant that turned off utils and moved out five days ago.