We have to do a lot (over and over again), but since the square footage is so low and the quality of materials is lower, it doesn't add up.Our costs, excluding debt service and the $300 "capital improvement" appliances that will only last a year or two, is 35% of gross rents.

If so, in my opinion, you should get paid a reasonable PM fee (perhaps 10% of gross rents, but nothing extra for tenant placement or repairs), and then a 50/50 split of all cash flow and profit sharing.

I am taking deductions for everything including travel (relatively local) and meals, plus the obvious like repairs, cleaning, etc.When I do my taxes, I am seeing that my itemized deductions are slightly less than my Standard Deduction.I gross about $125K., I have my 401K maxed out.I have a very modest positive cash flow on both properties, but less now since I have no tax reduction.Assuming I have done my taxes properly, this means that the miracle of a "real gain" but a "paper loss" is not working for me.

Since both properties are exactly identical in term of number of units, parking spaces, gross incomes, expenses and so on, I am combining the specs so to provide a less complicated picture.

Any Realtor that allowed a seller not to be secured would be failing in their responsibilities, so would an attorney, that's just gross misrepresentation.

House could possibly use some new flooring, but really doesn't even need that, virtually move in ready.Purchase price $42kEstimated rent- 730-750 a month.Taxes - 1200 a year.Insurance- 500 a year.Expect 400+ in gross cash flow, expect expenses to run pretty light, considering all big items are nearly new.Thoughts?

Hey, @Donna Gross I'm a newbie next door in Mississippi.

Price- $239,000 Finance- Owner finance with 15% down ($36,000) 5% APR with 30 year Amortization with 7 year balloon Monthly P&I + Tax and Ins- $1507 Gross rents- $2825 - $500 for 2/1 X5 units and $400 for 1/1 unit Monthly Expenses- $430 Cost of repairs (Deferred Maint)- $15000 (high estimate) Cost of upgrades to units- $15000 (high estimate) Market rent- $650 for 2/1 and $500 for 1/1 Pro Forma Rent- $3750

About 30% of my tenants are sec 8 and 20% of my gross rents come from section 8.

I also think leaving $150 per unit on the table for rent will cut 7% off your gross cap rate.