@Leatha Williams @Jeff S. is right on track.I will add, you need to line up your team get the best of the best.Property Manager go to IREM.org look for the ARM certified.Property Inspector go to ASHI.orgLocal REIA clubs get referrals for real estate attorney, contractors etc.Remember expenses for a property that size should be 35% of gross.

This is why typically we use the 50% of gross expected income because over time in a properties history it will be this way and if landlord pays water it will be close to 60% total.Now there is another angle here in that with these town houses if the market is improving you might be able to buy the properties and then bifurcate the loan.

Here are some of the gross numbers.

After 2yrs of documented experience, 75% of the gross rent is the highest they typically apply to your DTI ratio.Portfolio and commercial loans have different requirements, and I'd say they are harder to acquire than a conventional loan.

More if we use some of our home income to buy more homes.Homes today around here in that price range bring in around 1400/month rent today. using today's rent, 10 homes should bring in 168000 a year in today's money. appreciation should gross more 20 years from now I assume, market depending(once we have accumulated 10 or more).Also, we both will have life insurance, so any kind of a disaster(I hope not of course) could be taken care of with this life insurance.So my question is, is my logic sound?

One of those 2 partners did just that: got a call off one of his first 500 letters, closed with a 34k gross spread 60 days later....but he had lots and lots of help, and enough money to start a marketing campaign.I tend to agree with James Vermillion on his assessment of the company offering a refund.

That rule says that, over time and for many units, 50% of the gross rents will go to expenses, capital, and vacancy.

If it happens I did better than thought but if it doesn't I am still okay.If the area is nicer you might not can get a 10 cap but I will use that for this analysis.525 rent by 4 units = 2,100 gross monthly X 12= 25,200Since the building is older and landlord pays utilities I am going to do 60% operating costs instead of 50%.25,200 X .60 = 15,120 operating costs25,200 gross rents - 15,120 operating costs = 10,080 net yearly before debt serviceAt a 10 cap you would look to pay 100,800 - 3,000 (your stated immediate repairs) if they are accurate = 97,800 purchase price

I'm guessing for 10% of gross I can probably get someone (a "Guy Friday") to do 70% of the mgmt, quite a bit of the maintenance and some "running around" that might fall outside of those two jobs.

No recent offers and something like 4 months on market.Unit 1 is a 1/1 currently leased at $500Unit 2 is a 3/1 currently leased at $500 (basement apt.)Unit 3 is a 3/1 currently leased at $650Unit 4 is a 2/1 where we would live could be leased at about $575Total Gross potential income is $26,700/yr.