TOTAL MONTHLY EXPENSES:  $1,504 (monthly P&I, plus all the expenses outlined above)TOTAL MONTHLY CASH FLOW:  $396 ($1,900 rents - $1,504 expenses)Annual Cash Flow:  $4,751 ($396 x 12)COC RETURN:  9.1% ($4,751 annual cash flow / $52,475 total cash in)Net Operating Income:  $13,691 ($1,900 in rents / $759 in expenses other than principal & interest payments... x 12)CAP RATE:  7.6% ($13,691 NOI / $179,900 purchase price)So, you can see this isn't exactly a home-run deal as far as CoC return goes, but the cash flow is almost $200/unit, which isn't bad.

I bet you'll be able to connect with someone willing to do a JV (joint venture) with you or at least offer "softer" hard money to get you going!

The physical operating costs of a brokerage are pretty minimal when measured against gross revenue.

Brother has real estate flip operations in Ohio.2.

Gloria,Based on the excerpt below from the TN Business Tax Guide (google this for your reference), operators of residential and non-residential buildings other than hotels, motels, or rooming houses are exempt.

The owner is free all operational responsibility.

Hoping the pros on here can share the facts, and also cite their source in light of a potential audit.Finally, just a TurboTax question - what is it referring to when it asks me to list any "nondeductible expenses from prior years - operating/depreciation/AMToperating/AMTdepreciation"?

Just create an LLC and have initial capital contribution into the LLC be enough to fund acquisition (down payment + closing costs + legal funds to start LLC) and have operating capital from day 1.

Hello, Quick question,  what is the 50%  operating expense rule  when it comes to small multifamily properties . 

This industry weeds out people that operate on the contrary.