@Jacob Breazile - Make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance Property Hazard InsuranceFlood InsuranceEarthquake InsuranceUmbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy) Water § Sewer § GarbageElectricityNatural GasPropane9) General Maintenance (usually 5%) Upkeep § LandscapingSnow removalRepairsNew Appliances10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.)

Is there some kind of BP standard assumption on how much money we are putting down when labeling a property as cash flowing vs. not cash flowing? 

I'm 26, and working to get the life I want to live happily, financially free, and to the standard I uphold myself to through Real Estate!

They do require much greater hands on management as they generally have very low personal social standards.

Good morning BP, Looking for different examples and advice as to how property managers handle the payments of taxes/insurance/utilities for property owners?

But if the property needs $8K in repairs, then using the standard all-cash formula (70% of ARV minus Repairs), it's worth $23.5K at best to an investor.And, yes, a buy-and-hold investor might like the short-term cash flow, but what happens in three years, when the balloon comes due?

(the down payment is completely relevant to the seller)Interest- 7% is pretty standard...it's a premium paid for consideration in carrying the noteAmortization- 30-years is typicalPayment- I would look for the actual P&I based on the amortization schedule, but again, this is relative to the sellerBalloon- 48-60 months is common, and this is completely up to the seller as well (If sellers are leary of the time frame, I always agree to attempt a re-finance sooner...but no guarantees)Some extras:I always pay the listing agent's commision based on the transaction price...otherwise, you can structure a partial commission the first closing and a second commission when the balloon is due...waiting 48-months for the rest of your commission is crazy, thoughWe pay all the doc prep fees (note/mortgage/amortization/assignments/personal guaranty) Typically around $300, so not bad.- use the attorney at title and add it to the HUD-1We use a clause in the note that waives the right to defend a foreclosure in default, so the property returns to the seller without contest (varies from state to state I imagine)We also pay the sellers closing costsAll of this stuff is negotiable...you can always push things with these...like lower the down payment and have the buyer pay all your clients fees and your commission, etc.Give me a shout if you want to chat more about this topic.

there is a loan disclosure at the bottom of the CD that reads escrow account: $5277.03 says right next to it estimated total amount over 1 year escrowed property cost:Property taxes, homeowners insurance. mortgage insurance.

On our standard lease, there is a section on the back that covers abandoned property and the 30-day storage clause.

What does landlord insurance cover if you're investing in an apartment building with 100 + units?