Agents have started listing low and holding off offers to generate bidding wars.Know the landlord regulation and zoning landscape in each market.

I would think that updating the colors and enhancing the landscaping would be money better spent!

Landscaping $2,400/yr.Management $4,800/yr.10% reserves (5% CapEx, and 5% maintenance) $4,800/yr.$15,000 estimated expensesAssuming continued 17% delinquency (1 unit out of 6 every month), and Vacancy/Loss of 1 mo./6 units/yr. (8.5%) $4,000/yr.Total estimated costs of $19,000 yr. for an NOI of $29,000.00, or 21.4%This is a C- property with meth heads and SSI tenants.

It is in need of landscaping (trees growing out of control) and some work on the exterior.

I'm also looking for water, sewer, landscaping/snow removal, & garbage as well...maybe the tenants cover all of that, but be sure not to overlook. 

I also asked to see the HOAs financial docs, and the president just replied that the dues cover insurance, cable, landscaping, and other small item issues that come up. 

After needed repairs (which includes new cabinetry in the bathrooms) and some light landscaping I'll have about $7k to use on more "discretionary" rehab items.

I was just going to put new flooring and trim through out, paint everything, landscaping and spend money on the bathroom which needed the most work.

By understanding the how’s and why’s behind this irrational market in housing and knowing to get out when they change.Check back tomorrow for part 2 of the series: demographics & location!

I would look at the area and its demographics for sure.