How many day of contingencies am I allowed?

How many day of contingencies am I allowed?

And can I make the compensation contingent on these measures of quality in the contract?

The numbers are with the current rent which is about $100 per unit below the market in that area.Leverage:90%Marginal Tax Bracket:35%Appreciation:2%Capital Gains Rate:15%Interest Rate:6.00%Value of the Land:20%# of Units2Total Square Footage1568ARV after Rehab:$100,000COMPARATIVE ANALYSISPrice Per Square Foot$57.37Price Per Unit $44,975Gross Rent Multiplier6.52Cap Rat/ROA7.97%PURCHASE ANALYSISPurchase Price$89,950Closing Costs2.00%$1,799Total Cost $91,749First Mortgage90.00%$80,955Second Mortgage0$0Down Payment$10,794ANALYSIS OF FINANCINGInterest Rate 6.00%0.50%Term in Months (n)360Amount Borrowed (PV) $80,955 Balloon Payment (FV) $- Monthly Payment (D)($485.37)FIRST YEAR OPERATING PROJECTIONIncome/ExpenseNet Rents $1,050.00 $12,600.00 Vacancies5% $52.50 $630.00 Advertising $- $- Cleaning & Maintenance $50.00 $600.00 Contingency $50.00 $600.00 Captial Improvements $- $- Insurance $50.00 $600.00 Property Management 10.0% (self managed) $105.00 $1,260.00 Property Taxes $180.00 $2,160.00 Water, Sewer, Garbage $50.00 $600.00 TOTAL OPERATING EXPENSE $537.50 $6,450.00 NET OPERATING INCOME $512.50 $6,150.00 Mortgage Payment $(5,824.39)Pre-tax Cash Flow $325.61 Tax AdjustmentsInterest Payment on Mortgage $4,830.26 Depreciation (affects TI not CI)$71,96080% of value/27.5 $2,616.73 Year 1 Taxable Income $(1,296.98)Pre-tax Cash Flow $325.61 Tax Expense $453.94 NET CASH FLOW $779.55 CASH ON CASH RETURN YEAR 17.22%My first thought is to Raise the rent to 575.That would bring cashflow up too 120 per month at 13.3%.

A few suggestions:- If the deal looks good, get your offer in quickly -- as soon as the bidding is open to investors;- Try to have as few contingencies as possible;- Cash offers are much stronger than financed offers;- If it's early- or mid-month, offer to close by end-of-month -- sometimes FNMA will choose a lower bid that can close before the end of the month over a bid that can't.

As per BP, this was a cash offer, no contingencies.

Tying up the property w/ a contingency might be the best bet for you.Find a Realtor that works that area and if they are any good they should be able to tell you what you need to know.Find out who is making loans in the area (via RE agent) and prequalify.If you find out you can't qualify for regular lending your risk goes up.

I can issue a NTP (Notice to perform) and cancel escrow and keep their $35k EMD if I choose as they have released all contingencies at this point.

You want to have provisions which include if the house does not appraise (or you can have the buyer waive their financing contingency like I do) and then you also need to outline who is responsible for repairs.

Any standard financing or appraisal contingency will have this language.