So, we'll add roughly $100 extra a month for that.

No need to pay any extra for this.

so if a rental brings in $180 extra a month, it isn't taxed?

Assuming that maintenance and repairs will cost 20% of gross rents (I believe this number to be way north of what it will actually cost) we arrive at $1,015 for maintenance and repairs.I will also have an extra $2,000 in a revolving CD ladder as a slush fund to fix whatever Murphy's Law throws at me.So:Gross rents: $5,076Taxes: $701Insurance: $766Debt service: $2520Maintenance and repairs: $1,015Cash Flow: $74I realize this will be basically a wash as far as cash flow for the first year, but I think I have all my bases covered as far as projecting what expenses will be.

If I went this route I would not have to spend extra time in school either because I meet all the prereqs already.

REI_Kevin, can you explain how you collected the extra 49k at closing?

This is more a rule for single family houses than apartments, but still a good rule of thumb for apartments as well.You can argue whether an experienced landlord in specific locations can ever get expenses lower than 45% on-average, but I think 99.9% of experienced landlords would never honestly believe you could get expenses anywhere near where you have them (25%).You can take Mike's advice and plan for 45-50% expenses (he has dozens of data points to support it), or you can stick with your own estimates, and consider it a learning opportunity a couple months down the road...Good luck!

Today, we measure the value of air rights on behalf of a seller not only by the use of the comparable sales, but also by how much extra value is generated by the air rights," said Von Ancken, speaking at a meeting of the National Realty Club last week.More Articles of Interest U.S.

Using historical data, census bureau for income and NAR for housing prices, from 1968 to 1999, housing prices averaged 2.769 times yearly income.

Give them their notice, use their deposit to get the problems fixed right, and start over with a new tenant.Alternatively, ask for an additional deposit to deal with the extra damage.