This is one reason I use an overall percentage (55%) for expenses when completing my initial analysis.  

My buddy just approached me with an offer to invest with him in buying foreclosures, he is a GC and he has done house flipping before, he wants me to invest 30K-50K of my own money and use it to get a 6 month rehab loan from a hard money lender at a little over 11% interest, after the House was finished we would split 50/50, he would also add me to his LLC that we would use for that future buy, the reason I’m thinking about investing Is bc I own my own business which will bring 200K this year in gross profits, the down side of my business is that I work 12 hour a day 5 days a week, and I feel that I’m slowly burning out.

Hi @Christopher West is there a reason you're using only 5% for vacancy and 8% for repairs and CapEx?

The reason for this is that the tenant key also opens the "common area" doors, so I am in essence giving them the key.

But damn - how stupid can folks get in the face of the constant preaching of reason and logic...?!

Or 3 into 4, etc In some cases, you can petition the zoning board to change the zoning, but that’s getting harder and harder unless you have specific reasons that they should.

This is one of the reasons I like property investing.

2. if so, what's a reasonable value to apply to the property if the revenues increase by 37%?

Our reasons for going after apartments are 1) they are more risk tolerant.

Although a lot of my T/Bs are already working with a mortgage broker before they contact me, the broker couldn't qualify them for a mortgage, so then they started looking around for alternatives.Common reasons for doing an RTO include:1.