Approval is also based off of your credit score, so make sure your score is up to par and you've done all your research on which financial institution you plan to go with.

So here is a sample scenario:$60,000 purchase price25% down = $15k, advanced from the line of credit$45k purchase money loan based upon the value of the homeThe loan rate for the purchase money would be around 5-5.25%, the line of credit rate would be in the 5.25%-5.50% range.

Purchase based on sales comparables, at a discount, and have a good idea of what your operating expenses will be as well as what market rents are to get an idea of your return.

You will need to submit a repair list with a budget and the bank can give you a loan based on the ARV.

I only sent offers to extremely distressed properties based on provided pictures.My question has to do with direct mailing to Pre-Foreclosures.

While cap rate based on existing T12 may only be 7%, it is likely a hotel could achieve 10%+.

Even my $3,360/yr maintenance budget feels a little low to me based on the rehab to be done on the first floor.Now, when I plug these numbers into the calculator referenced above (including an 8% vacancy and $280/mo for repairs and maintenance), I can see that you'll have monthly expenses of $1,640.  

Account Closed From the little information I was able to get, it looked like about $200 per unit based off the gross rent/numbers of unit.

Im based out of Long Island and have been looking at properties in try state area.

Based on my projections, I would be able to purchase the 2nd rental after 3 years.I would then continue to use this plan (saving all rental income towards down payments) to purchase additional single family rentals around a similar price point of $150k.