@Adriana Siu if you can get $3500 cash flow and have a low interest rate, it should cash flow well.

This could also be called an 'equity play' where you are just buying the property to get into the real estate game and build equity, as it isn't cash flowing in its current situation (be it because of high interest rate, high RE prices, or whatever).  

Highest net includes fees, closing costs, . . . that stuff.

Dan - I'm not buying in DFW, but I am underwriting with 0% rent growth the next two years and then growing out my rents and expenses at the same rate in outward years - typically at 2% each.

Tax Benefits While Building- Create an LLC and pay start up costs through the LLC (architect fees, permit fees, etc.).

@Eddie Smith we've found the two biggest tenant complaints:1) Maintenance expectations not met (taking too long)2) Expectations of communication not metThere are many more complaints, but majority are tenant-caused that they want a free pass on: waiver of Late Fees, Payment Plans to avoid eviction, being allowed to get a pet or otherwise violate their lease with no repercussions.

"Cash Flow" nowadays seems to be a lot tougher than the years past with rates and home prices (and HOAs) the way they are.

A PM can cost you 10-15% per year but they can also keep you at market rate and protect you from losses.

I'm a little nervous too because the asking price is a little high for the amount of repairs that are needed, but I'm trying not to scare the owner with a low ball offer because I'm focused on getting him to finance the deal so I can get a low interest rate or no interest at all.

Same size spot ranges from $95 to $250 standard rate.