Personally, I would avoid it as it's going to destroy your cash on cash return and for me, that's king.

Dawn I would say the rate is high because of this:"Bank will do the deal at 15% down and 10 year fixed 6.5%"Only 15% is being put down instead of 25 to 35% the typical bank is asking for.So they price potential of default and all the other factors with appraisals and equity spreads into the rate.For much larger down the investor on the loan will take a much lower rate if it is a premium property.Less risk-less return is almost tied to anything.You need to go back a few years at least.I like to go five to ten and see how much insurance and property taxes have risen for that property on an annual basis.If they have not risen and stayed flat or went down I find out why.Could be a mistake on the city or counties part and it's fixing to go up or could be a temporary assessment relief program etc.The point is if these sharply rise in the near future it can throw off your projected numbers.I would try to fight the property tax if comps support it and get the taxes lowered to increase your bottom line.Regardless of age if you mishandle a a property (even a new one) and get crap tenants in there your maintenance costs will be huge.I have seen the wrong tenants DESTROY and brand new looking apartment in a matter of months.They also created a bug problem for the other good paying tenants that kept their place clean.With my buildings I have it in the lease that we do unit inspections every few weeks and if they do not keep the place clean then we evict immediately.When tenants apply we find when we say this upfront it gets rid of the deadbeats wanting to live like slobs,have unauthorized pets,and have big parties that trash the place.When factoring repairs is this property local to where you live??

HUGE issue if on well you need certified operators to run that plus water testing is huge.Now with major concern,,,,if you end up owning this put EACH house on there own meter,,,water,,,and make them pay the bill,,,plus put a limit on water usage or septic failure is next and most places they wont let you even fix those anymore,,,they want them gone.IF this court is fronted by city/central water, and city /central sewer you can tie onto relatively cheap,,,maybe buy,,if not sounds like heartache about to happen for you.

What general ballpark does it cost to have a lot cleaned up if the home is destroyed in the event of a hurricane or fire?

I would also require the partner to come with an extra $3000-$5000 at closing to put into an escrow account for those emergencies (tenants destroy stuff, etc), as a hedge against a ruined partnership the first time something major comes up.

My current homes wont work but I want to start planning for the next property.

To draw on a loose paraphrse from the Corinthian's, I was knocked down but I was not destroyed.

Why won"t that be a good plan?

Realtors tell you to offer more, they wont accept your low offer, they tell you your house is worth more ARV so you will list it with them.

It costs under $3.00 per square foot installed and finished.If they manage to destroy one section of the floor, all you have to do is sand it and re-stain and varnish it.