Such properties will be common in the area, that might be a good thing.

I agree with the earlier comment that your your property management estimate may be a bit high; if you are completely re-habbing the property, then the forward-looking repair estimate may be all right.One consideration is that your property taxes will probably increase as a consequence of your re-hab.I'm wondering of you've considered all of your potential opersating expenses -- lawn/snow, trash removal, electricity for common-area lighting.

I'm not familiar with New York law, but it's fairly common for a tenancy to convert to a month-to-month agreement upon the landlord accepting the next months rent following the expiration of the lease term.

It's quite common for there to be a year or two of property taxes.

bond for title or commonly known as land contract.

I'm just throwing it out there :DOr how about you employ your 2 other friends to do the construction if you trust them so you can have them involved, but just hold out on giving them the title of, "partner".

I remember years ago some family members did not understand owning your own business or being self-employed.

Victor, the problem you are having right now is a common one, and there are ways to leverage that.

It seems that this is a common starting point, so I'm very curious.

Even if you could do it, you likely do not want to unless you plan to hold the homes for a long time.3. 20% down on an investment property is not common.