HOA $1120 a mo.OPEX $31k, NOI $82k, CAP rate 25%. 

Typically you'll be dealing with older product - from my experience, the key to capping your downside risk is being able to identify plumbing issues.

Also, if I were paying utilities for a renter, I would cap them at a certain amount per month.

I would say very honest PMs who walked my Indy properties (after the I closed on the homes) or at least knew that neighborhood and an honest construction management company were very helpful - they all said I better add in a lot more reserves to the repairs and cap ex for old Class C.

mortgage closing costs: 2 to 5%property value appreciation: 3 to 6%cash on cash return: 2 to 4%cap rate: 4 to 5%rent growth: 3 to 5%rental property expenses growth: 2 to 4%repairs & maintenance cost: 5 to 10%capex: 1 to 3 %Vacancy rate: 4 to 6%Mahalo !

There will be a cap gain as the gain can be excluded under Section 121.

These areas tend to offer slightly more flexibility, and depending on the size of the property you’re looking for, you might find larger units than in Portland.Also, as Scott mentioned, increasing rents in Portland can be a slow process, especially with the 10% cap or 7% + CPI limits, whichever is lower.

Never took an hour to remove it or an hour to install it. 1. shut off water supply line(turn handle) 15 seconds2. flush toilet 10 seconds3. vacuum and drain water 2 minutes maybe 4 lay out cardboard(from toilet box) put out trash bag5 remove 5/16 nuts one on each side with hollow shaft nut driver 2 minutes6 pick up toilet and place into bag 2 minutes7 clean up old wax ring from flange and inspect flange 2 minutes8 place wax ring 1 minute9 install new flange bolts 1 minute 10pick up toilet and place on new ring if you didn’t ring right maybe 5 minutes 10 tighten down new bolts 2 minutes 11 cut bolts and install caps 2 minutes 12 reinstall water line 1 minute and turn on 13 flush to check for leaks 14 caulk back of toilet seal if you choose 1 minute15 carry away toilet to truck 10 minutes tops. this a 30 minute job.

Understanding cap rates, net profit and economy (supply/demand housing, interest rates lowering increases demand, the real estate cycle, investing for cash flow vs appreciation) will all set him up for success.

When I sold some lesser properties during recent market high of end of 2021/beginning of 2022 I chose to pay the cap gains.