You're likely looking at close to a 100% financed property with at least part of it on a variable rate in that situation.

Unfortunately over the past few years, both of these variables have been dramatically impacted.

These loans typically have a variable interest rate and require detailed plans, contractor estimates, and periodic inspections.b.

Presently that could be anywhere from 4% to 12% in interest and between 0.5% origination and 5% origination fees (again thinking through the lens of Private Money being between HM and Mortgage loans).With duration you'll again see a LOT of variability.   

Goal: Increase rents and force appraised valueIt is fully rented with newer leases and based on the products that are available to us and our timeline, we'll likely have a 5-year variable mortgage.

@Paul De Luca I know the answer to this can have a lot of variables, but regarding your lived in duplex, do you find yourself breaking even or close to breaking even (i.e. does your rental income cover the mortage)?

Add to that the wild variability of occupancy rates and you really need to have margins and or deep pockets and a strong stomach.

Also, past rental numbers are fine, but can be variable depending on the commitment of the owner and how many days they chose to rent out.

., I like to include a decent % variable expense to go towards big unexpected capex items- that way you are planning on building in reserves to handle these issue's ahead of time.

I know there are so many variables, but I was wondering if anyone could point to an educational resource that provides a sort of systematic way to break it all down.