That rule says 50% of gross schedule rents go to capital, expenses and vacancy.

I would appreciate your feedback on this commercial multifamily opportunity I am evaluatingYTD Rental Income $57kYTD Expenses including water, taxes, Insurance $27kNOI $30kThe property is currently being mismanaged, potential gross income is approx $13k.Would a financial institution look at this opportunity favorabily; would they look at the current/potential rent roll and P&L statements to make their decision?

When 50% of my gross rent is already gone due to taxes and fees it doesn't leave a whole lot of wiggle room.

Such as I would like to pay you this amount over a period of this many years, and at the end of the term this is how much you would gross (=purchase price+plus the interest).I hope this helps.

Needs no more than 10K rehab, price range 80K to 120K, estimated cash flow of 1.25% per month of purchase price + rehab cost.( that would be $1,250 of gross rent per month for a $100,000 purchase) Until you decide what you want you are simply wasting his time.

Gross income = 39600.For expenses, I determined:Property taxes: 1500/yrInsurance: 3095/yrMaintenance: 5760/yr (assuming $480/mth, 12%)Water/Sewer: 3000/yrProperty Management: 3600/yr (assuming $300/mth)Advertising: 150/yrTotal Expenses: 13410NOI = 26190The catch is that each building will require extensive rehab.

I exchanged it for 4 $100,000 houses in Texas which gave me $4,000 month in gross rent.

You want to be credible when approaching people and knowledgable.If you do not have numbers down pat then it will not give a potential investor confidence in your ability to perform and give them the return they are expecting while protecting their capital.All the best.Correct me if I'm wrong I'm still pretty new at this stuff but the 50% rule says 50% of gross rent income goes towards maintenance while the other 50% goes to pay off the loan/mortgage. 

I will take 425 a unit X 9 = 3,825 month X 12 = 45,900 potential gross incomeWith a building that age I bet there are big issues behind the walls with electrical, and other things asbestos, etc. so I would go 60% annual costs for property management, vacancy, and O and E.45,900 X .40 (60%) costs = 18,360At a 10 cap that would be 183,600 purchase without immediate deferred maintenance which would come off of the sales price.

Details Location: Dayton Ohio 4 Units Rent amounts - $300 (for 3 units) $350 (for one unit) = gross monthly rent is $950 (accounting for property manager living rent free in one unit) tenants pay all utilities except water Asking price: $10,000 (This is also the mortgage balance) ARV: $50,000 Repairs: Owner says non are needed but I'm estimating $2,000 (I have no idea if this is accurate but I'm assuming since there is an onsite property manager, it should be in good shape, house built in 1909)Seller motivation: 85 y/o tired landlord who wants to sell ASAP Assignment fee: $20,000 MAO = .65(ARV)-Repairs-Wholesale Profit =.65($50K)-$2K-$20K= $10,500This leaves me with a MAO which is slightly greater than my offer price.