Originally posted by "keitakun":On a conventional loan no insurance and no taxes.It has been a long time since I dealt with anything but HELOCs and they have no closing costs.well it depends on what state your located in, but rule of thumb is 2-3%.

In my experience, for any lease/house rules violation other than something causing an immediate and serious hazard, the landlord must give a written notice of the violation, and, based on local law, "X" number of days to correct it.

List price $440,00016- 1 br units; one building; upper and lower units1 vacantOn site leased laundry (2 machines)Landlord pays water and gasTenants pay electricRevenue per unit(stated):11 @ 4151 @ 4402 @ 4301 @4201 @ 410Laundry $1100/yrTotal Rev $81,320/yrExpenses (stated):Gas/electric $8626/yrWater $4300/yrTaxes $8000/yrIns $3000/yrYard Maint $1490/yrTrash $804/yrTotal Expenses (stated): $26,220/yr (well below the 50% rule)Tax information: last transfer 1999; 54.2663 mills for non-owner occ.; current SEV $162,400; taxable value current $145122From the listing agent: Nice old lady has owned them for 30 years; built in '70's; currently has one vacancy; all units are 1 yr lease; half of tenants have been there for a very long time (years); other 8 units turn about 1x/yr; great neighborhood; upscale community; walking distance to downtown; roof is 4 years old; hot water heat (LL pays); "A" propertyHave not seen the inside yet, from the pictures I've seen the kitchen/bathrooms are outdated.

Here's what I am guessing:1) Maintenance2) RE taxes3) Vacancies 4) Delinquencies5) Any HOA feesAre all of these built into the 50% rule?

My questions is how in the world can you justify the 2% rule in a metro area?

Even the 70% rule of thumb is based on some assumptions, mostly that you're using hard money for about six months, and your goal is a 15% profit.

My guess would be based on "standard" formulas (2% rule) as covered time after time in the forums, your units barely cash flow today if at all (would need to bring in $3k/month in rent).

You're trading maintenance you pay yourself for maintenance charges from the HOA.Some HOAs have hard and fast rules about renting.

Refine the steps that you have been taking keeping the things that have been helping most and getting rid of activities that have had the least to contribute. c)Use the 80/20 rule.

And that's why we end up with seasoning rules and nobody who will do a double close.Jon