Inspection came back and I estimate $15k repairs (which includes $5k for two trees to be removed hanging over the roof, and $5k for a back deck that is wood leading to concrete stairs - terrible construction).

Start looking into homes with seller assist, where the seller becomes the bank.

In the Cambridge-Somerville area, triple deckers in need of repair easily go for multi-millions, you need a lot of capital upfront for downpayment and rehab costs and you are relying on appreciation to build equity - the flip and condo conversion is a popular option in these areas. 

So, Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, Passive, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To", apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc.

Download PDF Edit Report Discuss in Forums Other Actions $1,500.00 Monthly Income $786.67 Monthly Expenses $713.33 Monthly Cashflow 12.53% Pro Forma Cap $10,024.00 NOI $18,480.00 Total Cash Needed 46.32% Cash on Cash ROI 18.26% Purchase Cap Rate Expenses Income 50% Rule Total operating expenses: $664.67 Mortgage expenses: $122.00 Vacancy: $75.00 Repairs: $75.00 CapEx: $75.00 Insurance: $150.00 Management: $150.00 P&I: $122.00 Property Taxes: $139.67 $54,900 Purchase Price Purchase Closing Costs $2,500.00 Estimated Repairs $5,000.00 Total Project Cost $62,400.00 After Repair Value $80,000.00 Down Payment $10,980.00 Loan Amount $43,920.00 Loan Points $0.00 Amortized Over 30 years Loan Interest Rate Monthly P&I $122.00 Total Cash Needed $18,480.00

I used the following values:Loan: 20% down, 30 years at 4.75%Vacancy: 10%Repairs: 12.5%Cap ex: 12.5%Management: 12%There is hardly any cash flow AND I used last year's tax appraisal value. 

If so, was this after repairs or w/o?

.- I swill still have some reserves for repairs; going FHA because they still allow minimum down on a duplex, where Conventional guides require 15% down.

shouldn't it be lower for condos because some repairs are being done by the hoa? 

@Juan Vargas maybe you can assist @Scarola Markson