Now we take the 33,600 and take away 50% costs ( generally 10 vacancy, 30 operating and expenses, 10 property management for that size of 4 units)33,600/2 = 16,800 a year expected NOI (net operating income if paying all cash).

In fact, it depends on the type of property you are involved with, you don't need one to buy a house under a commercial loan, 32 apartments, it would be better if you had a plan, showing vacancies, market aspects (which would be a paragraph, maintenance schedules, written policies, lease to be used and soon along with a 3/5 year pro forma.

Further, you could negotiate terms with the park in the event of vacancy and much more.

You will have to factor in taxes, insurance, utilities, vacancies, maintenance and repairs.Call me if any of the above is not clear.

Might be worth talking to the neighboring owners to get a handle on what they get for rent and vacancy if those are going for closer to market rent.

*Finance Expenses$50,000 Purchase Pricex 65% LTV$32,500 First Loan@ 4.75% (5/30-year Mortgage)$233/month Principal, Interest, Taxes & Insurance (PITI)*Operating Expenses:$800/month Proposed Rentx 75% (to discount for vacancies, utilities, etc.)$600/month "Discounted Rent"$600 Discounted Rent-$233 Mortgage Payment (PITI)-$235 HOA Dues$132/month Positive Cash Flow

Just a little anxious wondering what could happen we have always had a big demand for rentals here I've never had a problem with vacancy .

Vacancy here low 3% so thinking it is rentable w/o garage with a discount.

Then if the 2/1 was the darling of the lot - then I would gradually convert every future 3/1 vacancy into a 2/1.

Asking Price: $145,000 Conventional Loan Terms: 30yr @ 4.75% w/ 25% down payment $575 Gross Rent: 2300/month; 27600/yearly Seller Disclosed Expenses (Unconfirmed): Taxes: 1352 yearly Insurance: 1600 yearly H20 & Sewer: 528 yearly Expenses: Using the 50% rule, or 60% for expenses rule since owner would be responsible for utilities (sewer & water): 2300x 60% = 1380 for expense other than Principle & Interest (P&I) Vacancy @10% = 230 PM @ 10% = 230 Repairs/Improvements@13% = 300 Insurance = 134 (seller disclosed) VS. 160 (estimated) Taxes = 113 (seller disclosed) VS 125 (estimated) Sewer & H20 = 132 (seller disclosed VS 210 (estimated) $1380 - 1255 (My Estimated Expense Total) = $125 P&I Payment and Profit: 2300(Gross Monthly Rent) x 40% = $920 P&I = 575 $100/Door Rule x 4(Fourplex) = $400 $920 - $975 = ( -$55)/month As you may notice, the seller's disclosed expenses vary greatly from my estimated expenses.