Let's assume you don't take a loan.Purchase Price: $1,299,999Closing Costs: $25,000Renovate unit: $35,000Build 2 ADUs: $250,000TOTAL: $1,601,000The cashflow calculation looks like this:Gross existing rent: $5,600Gross rent from 4th unit: $2,500Gross rent from ADUs: $3,000TOTAL GROSS RENT: $11,10020% Expense Ratio: -$2,220Property tax: -$1,354TOTAL EXPENSES: -$3,574NET CASHFLOW: $7,526So, about 3/4 of your $2M budget gets you to about 3/4 of your $10,000/month goal.

,My stable consists of:1982 Mercedes-Benz 300D Turbodiesel - 27mpg regularly, few repairs, 192k miles, low insurance1998 Mercury Mountaineer, 16mpg, reliable so far. 130k miles2001 Mercedes-Benz E320 21mpg, reliable, 115k miles.My personal favorite is the 82; my costs are so low and it keeps me from speeding.

Unpopular response: Didn't he verbally tell you it'll cost $30K? 

Then have a Roofing contractor go out to the property and tell you how much it will cost to fix the problem.

We're funding deals with as little as title costs/insurance to close for experienced borrowers.

@Peter Woerner the last refi I did was a no closing cost loan.

On the other hand, probably lower property costs there vs other locations.We've looked at a couple locations on the OR coast, but as a WA resident adding the OR income taxes have made other locations more attractive for us.

The second tenant stopped paying and it took me 4 months to get them evicted and more turnaround cost. 

What if the $2,600 sewer repair actually should have cost $4,300?

One owner is looking to exit to middle to high sevens on yield on cost.Cap exits are high 5’s, low 6’s for some Class A product.Turnover cost projections should escalate: $500 first year, $850 second year, $1000 third year.Consolidation and density of BFR assets can be an issue for insurance companies.