If the other agent found the deal first, that seems to me more than fair to buy it from the other agent especially if you are having reservations even telling me about the deal.

When renting out property, you need to reserve enough monthly to cover those future hits.

That should only serve to help you frame your comfort level...if you'd rather put $100, $200, or $500 away towards this portfolio instead of an IRA or TSP, that makes sense.However, you definitely need to do the research & make sure your numbers are solid, and that you've got cash reserves (or access to a line of credit) to tap into.

If you're not living there, you're probably looking at 20% down for a non-owner occupied rental property.When I run my numbers, I try to be as conservative as possible, ie: I want my expenses to appear high on paper, so when rubber meets the road, the actual expenses come in lower than my estimates, meaning more cash stays in my bank account.From the gross, I usually take 10% for vacancy, 10% for repair reserve and 10% for management.

Semper FiWelcome to BP, we both have similar story . 7 years active in Army and now in reserve.

The reserve on the hubzu auction hadn't been met.  

I maybe could stretch and get together 20% and get a bank loan - although I wouldn't feel like I had enough cash reserves.  

Maintenance needs to include some CapEx reserves which I believe the seller probably didn't have much of in the year he gave you these figures.The only way this deal works is two things - the rents are below market so you can raise them up to market rents AND you get a better price on the purchase price. 

Portland Metro AreaCurrently Value - $295,000ARV - $312,000Purchase Price - $282,000Sub2 Current Mortgage - $252,000Down Payment - $10,000Payments to Seller - $20,000 paid over 4 years starting a year after purchase.PITI - $1900Rent - $2700Money to renovate - $1000Time from purchase to moving renters in - Zero (replacing flooring in 2 bedrooms after tenants moved in)$500 reserves for repairs, vacancies, and capital expenses.$300 cashflow.Plan - I plan to hold this property for a very long time.

Hey everybody, When financing/refinancing investment property, it seems a 6 month PITI reserve is the normal requirement for all properties owned.