It is all ready except for the fact there is no heat down there.

Completely new rehab with brand new central heating/cooling system, new appliances, new roof and new floors.I'm ok with going mostly for the appreciation since I'm currently out of the country and I prefer to increase my chances for stable long term tenants.

Heating system was replaced with a rinnai propane unit and is 5-6 years old.

While most ordinary interest income is exempt from UBIT if there is some sort of profit participation element there might be UBIT tax owed.

If I could stand the heat better I would retire there in a heartbeat. 

We've seen appraisals come back surprisingly low despite the heat of the market. 

It has a finished bathroom but no kitchen and no heat but two points of egress.

2 Family Building RentMortgageOther ExpNet Profit 1st Floor - Taxes 1,124 2nd Floor - Insurance 292 3rd Floor 1,500 Heat - 4th Floor 1,550 Water&Sewer 150 5th Floor 2,800 Electric 100 Store - Maintenance 200 Total Monthly 5,850 4,316 Total Monthly 1,866 (331) Total Annual 70,200 51,787 Total Annually 22,388 (3,975)Owner based on downpaymentOwnership %Monthly IncomeAnnual IncomeCash DownROI %Joe100.0% (331) (3,975) 124,500 -3.2%0.0% - - - 0.0%Total100.0% (331) (3,975) 124,500 -3.2% Dollars Rent Multiple: Building Mortgage Purchase Price $ 995,000 14.2 Loan Amount $ 895,500 201K Renovations - Loan term in years 30 Seller Concession Percent 0% Cap Rate: Interest Rate4.000%Seller Concession Dollars - 4.8%Monthly Payments $ 4,316 Price with Concession $ 995,000 Annual Payments $ 51,787 Percent Cash Down10.0%ROI:Cash for financing 99,500 -3.2% Private Loan Closing costs (besides concession) 25,000 Loan Amount $ - Cash Renovations - Payback: Loan term in years 30 Cash dispensed at Closing $ 124,500 -31.3 Years Interest Rate4.000%Piti Reserves (6 months) 25,893 Monthly Payments $ - Cash needed liquid at Closing $ 150,393 Annual Payments $ - Tax Impact: Deal Structure Pre Depreciation Profit 11,992 Building Mortgage $ 895,500 Depreciation 36,182 Private Loan - PreTax Profit (24,190)Cash $ 124,500 Tax Rate25%Other Funds/(Surplus) - Tax (Savings)/Cost (6,047)Total Purchase Price + Costs $ 1,020,000

The excavating contractor company, which did all the remediation work, produced a PA Unregulated Heating OilStorage Tank Closure Report to show that the work is completed and met the state requirement.

One month later the tenant called me after the heat exchanger cracked and exploded.