I did not include:( Hopefully, I can get through the first year with minimal costs in that area because all appliances, carpet, hot water heater etc are brand new.

got a quick update for you guys.Had to put in a new furnace, central AC, and hot water heater.

I also just found out about heat pumps which run on electricity (as opposed to oil) that can pull heat out of the air.

Also, the inspection went really well with very minimal things to fix.purchase price $191,000 4 plex.25% down at 4.75% interest rate. monthly mortgage $1,150Total rent each month $2,350 with a on site laundry that brings in around $80 a monthunit 1 $550, unit 2 $575, unit 3 $600, unit 4 $625my water will average around $180 a monthcash flow is roughly going to be $1000 a month not including vacancy rate and repairsall four units are rented and the tenants want to stay. 3 out of the 4 tenants are all Air Force since it is close to a local base.Do I want to have all the tenants to sign a new lease?

I realize that Denver is a hot market (few days on market), I live here, but what if your buyers can't deliver.

It's a strategy from 15 years ago and they are serving it back to the masses again because the market is hot and lots of people think they are gonna get rich on RE by employing those tired old techniques.

From that, it's my opinion, regardless of the market, hot or slow, appraisers have more deals going across their desk, generally than any Realtor or investor.

Larthsa,To figure cash flow, you list all of the monthly expenses, Principal and interest, taxes and insurance, add in any utilities, HOA fees, etc,,,then you need to figure out a fair figure for "reserves', this is a hold back amount for the hot water heater breaking etc,,,then figure in a percentage for vacancy (most will use around 5% if its easy to lease) if your going to have a management company manage, their fees,,then add,,,take the final figure and take it from your monthly rent, and you SHOULD have your cash flow (if I missed anything anyone please chime ini)If you want to figure your "cash on cash" return, figure out how much you will end up in the deal for in cash (deposit, rehab, closing cost paid in cash etc, all expenses you will pay in cash), thats your total "cash" in the deal,,now see what your annual cash flow from the property should be, divide that by the cash you have in the deal, and you should have your cash on cash.You can do this with a simple spreadsheet, it makes it very easy to look at deals, but remember, these numbers are only right IF the estimates you put in are right,,,including the anticipated rent,,too many new investors tend to under estimate expenses and over estimate rent.andy

Hot water baseboard heat runs at a lower temperature, usually around 160 degrees Fahrenheit.

Asking price is usually high (in my area), so there's usually room to negotiate, unless it's in a hot neighborhood.If I thought the price was too high, I'd have no problem offering a number that would work for me, even if it's way below list.