@Rob K - you know that they can do things like hook-up utilities in an illegal manner, for example. :)

I understand the concept of OPM and utilizing hard money lenders to fund an investment purchase, I guess it all comes down to networking and getting to know the right people to actually make it happen, as is how it works in any field/industry.

Chris Masons the utility area was on the back porch, so in a comedy of errors the tenants had a bag of match-light charcoal laying near the dryer.

You need to find a good consultant to test it.I thought asbestos used in most building materials was banned in 1975?

If you run the numbers on a very conservative side (10% vacancy, $1,500 taxes & insurance each, 5% cap reserve, 2.5% utilities, 10% repairs) you are looking at a NOI of $16,157.

But the security, lower fire risks, ability to survive weather (so long as it's not in a low lying area, LOL) and lower utility costs is a big plus!

If so then here is the cash flow:$14,940 :Annual Rent- $1494 :Vacancy @ 10%$13,446: Gross Income- $1,345: Repairs at 10%- $2,110: Taxes- $1,163: Insurance- $ 336: Utilities @ 2.5% (Covered for vacancy)- $4,953: Total Expenses$ 8,493: Net Operating Income- $8789: Mortgage Payment of $732.38 x 12 Months- $ 296: Before Tax Cash Flow.It is going to cost you $25 out of pocket every month to own this property - that is if everything goes well.

That was materials and labor to replace the bathtub drain assembly, a new P trap, and 1.5 inch PVC pipe to the main stack that was about three feet away. $1,500 that you got charged is highway robbery.

I've factored in Taxes, Insurance, Cleaning, Snow/Lawn, Turn over.Your expenses are missing a few things: Maintenance, Vacancy, Capital Expenditures, Utilities During Vacancy, Legal/Accounting, etc.

Have you verified with the tenants via estoppel letters that the leases are accurate, they are paying the stated rent and that they DO pay their own utils?