Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Hello BP community, so I have been lurking for a few weeks at all the posting and advice on the forums and have finally convinced myself that in order to maximize earning potential on a property I have been holding for a few years now I will have to convert it into a multiplex. the details are as follows:currently, owe 120K @ 4.7% 6300 sf ranch style SFR, it is built on two residential lots (room to add a duplex adjacent to this property)currently brings in $1650 for rent, have rented out as high as $2000 (the Eagle Ford shale was booming a couple years ago)have been slowly upgrading and improving (new roof, new laminate flooring, some lighting fixtures, new paint)needs to be updated this was built in 1990, windows are old, some of the siding looks weathered and the worst part is the bathrooms are dated (everything is functional)I have looked at housing rents and most 2/1 or 2/2  usually command $900-$1300Appartments are a little bit cheapper $700-$1100I had trouble using the rental estimator calculator, then tried the BRRRR, I linked the report estimating the following:https://www.biggerpockets.com/calculators/shared/1083149/4f695ede-d602-47bf-a183-b0d69ff0cf64Upgrading showers adding new back porch deck (for access to upper units)converting where two new upstairs rental units would have a kitchen, 2 baths, and 2 bedrooms (comparable to an apartment) about 800 sf ($ 1200 per unit)lower dwelling 3000 sf could be split as well or rent out @ 1500 (would update and add one more full bath) making it 3/2 and 1/2 very large dwellingAll bills paid (water, sewer, power, lawn maint) about 1K per monthPlease review and point out flaws, mistakes were made but so far all on paper and in process of cash out refi, to pay for this conversion. so far budgeted $65K. advice appreciated. more details as required

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Monthly rents: APT 1 $900 & apt 2 @1095.Total rent 1995-30 garbage-25 water-100 insurance -120 repairs/ maintain-100 vac-970 mort/ taxesCash flow of $650 x 12= 7800.    7800/41541= 18.5% ROII plan on managing and lawn care on my own if I do end up outsourcing it the number would be: -199 management {10%}-66 lawn careCash flow +385 x12= 4620        4620/41541 = 11.5 % ROISo with self managing the ROI is great not so good if I outsource management Let me kno what think of these numbers!

I would cover snow removal, trash and lawn care.My offer:  They are willing to do an owner finance deal with me so here is what I offered.Purchase price:    $340,000.00Down payment:    $35,000.006% interest 30 year amortization period and balloon payment after 5 years with no pre payment penalty. 

Who pulls work permits for replacing lawns with mulch, for resurfacing driveways, and for installing Pavers? 

This is the only method that will determine the true cash flow from a investment separate from any artificial cash flow purchased with your own money.

record low cap rates, are one symptom of the last 10 years of artificially low interest rates. 

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.