Robert,They are typically subject to the state's home rule as you are operating in their state.

For this purpose, just divide the annual net operating income (50% of gross rent) by .09 as the high end, divide NOI by .11 as the lower end of your potential range.Also, ask an agent to do a BPO/CMA to provide a point of reference.

Then divide this actual cashflow into the "all-in" number to get your COC return.And for the cash scenario, you already mentioned that you cashflow is $5400, so your cash on cash return is:$5400 / $53,050 = ~10% (not 20%)I think the part you're missing is that the $5400 (in this example) is your "Net Operating Income," not your "cashflow."

Bienes,It is also the fact that he should be coaching you on what to keep track of and organization of records.

This unit will rent for $650 per month.With $700 total in operating expenses and $2,100 per month coming in, this house will be generating $17k net income this year.

I guess im just looking for some advice on how to organize a plan and present it to the right people so i can pick up more props by myself or with others..

You'll have to be very dependent on the "turn-key" company to handle the day to day operations, so you want to make sure they have truly built a full-service company and that they are planning on sticking around.

The operating agreement should specify a procedure.

I just wanted to resurect this thread becuase Im zeroing in on what this will actually cost me and what type of income it would generate.Roughly it would generate $11,300/mo (4 3bed, 6 2bed, 6 1bed & Im operating on the conservative side for the rent amount).Expenses would roughly be debt service of about $6,600, $900 for property insurance, Its exempt from property insurance for 5 years (renisance zone), $700 in maintenance, and I would do all the property management.We are talking the place from the gutting phase all the way to turn key for a million bucks.

Most of them are small operations but they all have that really cool machine in their full size vans that seem to turn what appears to be a lost cause into something miraculous(sp?)