Even if its correct, and you're thinking you'll avoid PMI by doing a refi that's under 80%, you'll need to have a loan balance on the refi that's under $264K.

Without those two sites, it will be very difficult for you to get and maintain the credibility needed for sales.

While I often disagree with MikeOh, his advice/analysis on this deal is close.When it comes to commercial multi-family units, it is very difficult to operate below the 50% OE.One thing that jumps out at me aside from the obvious "proforma" gross rents is the very low insurance rate.

Its complex enough to fill a book, so its difficult to cover everything in a few posts here.

Maybe it could some how damage your other accounts which would cost you more(I know it real life it can't just making the analogy).Like a poor tenant.Its a balance of risk and return.

Why not equate all the expenses that occur monthly, and the balance is your pre-taxable cash flow.

I'm having a difficult time, not knowing if I'm doing the right thing, having evicted a really good tenant to sell the place, and it's a struggle for me at times.

If you plan to buy replacement property A we put the address of that property as being acquired and the wording "plus improvements" in the letter.The fair market values of the replacement property and the relinquished property must balance and the debt should be equal (according to my CPA).

I seem to remember the process for participation as a partner with the RTC was extreamly difficult and they seperated and spun off the valuable assets before they repooled, packaged, and found GP's to take what was left.

My idea is to offer them at 40-50% below market value so there is a good deal for an investor, since these times are difficult.