The down side is it is thrashed and there are no tenants staying there which makes it ripe to go in and take electrical and plumbing which will happen if you do not secure the property (doors and windows) immediately.Good Luck on recovering any money from that PM.

Right next door sits a 16-unit complex (similar layout), all 1/1’s and renting for $500.

I had this problem, but it was with a tenant of the rental next door.

The problem is it's right next door to me.

There is a property (SFH) I am looking at that has a rental property (2br apt) in the back yard sitting on top of a garage- the entire property is actually zoned as a single family dwelling, but I was told by the owner that because that rental unit/building was built a long time ago, it was grandfathered in as a legal dwelling without special permits.

That if I can't buy a property at $100/door cashflow on a 15 year note it isn't worth it.

Personally, I'd rather compile a list from whatever sources I tap into (I guess that would include driving) and do, or delegate, the research in the office.

Here are the numbers:Asking price: 120KUnits are 2/1's, rent for $600 eachBuilt in 1959Tenant pays heat and electricIncome: $600 x 4= 2400/month and 28.8K/ yearlyI used the 50% rule to cover expenses, but some of them would presumably be:Insurance: $115Taxes: $357Vacancy: $240 (10%)The property seems to some sense using the 2% rule (2400 a month rents is 2% of 120k).Financing: I plan to live in one of the units and use FHA financing.FHA down payment of 3.5%: 4200Loan of 115,800 at 3.5% interest= $520 monthly paymentAfter 50% Rule, $1200-$520 = 680/4 = $170 profit per unit/monthlyI have just a couple questions about the property.The owner recently bought it and replaced the windows/doors and claims that the building is in good shape. 1.

Then my buyer's appraisal for the bank blew up when she couldn't find permits for conversions made several years ago by previous owner- they had converted the garage into a master converting a 1600 sqft home into 2200 heated.

i have 17 years left on the loan so i had a lot of principal paydown each month. i run slightly into my pocket to pay the repairs/maintenance each month.the kicker was the new house we bought, our quality of life went thru the roof...less commute, triple the space, new home. and an exact house 5 doors down appaised $20k more than our purchase price 6 months later.