Based on the market for a solid starting point Im looking at around total budget of $40-45k to purchase and rehab a place that puts out about $550 per unit at $1100/month.I would be paying cash, yearly taxes vary from $1800-$3000/year.

Based on the market for a solid starting point Im looking at around total budget of $40-45k to purchase and rehab a place that puts out about $550 per unit at $1100/month.I would be paying cash, yearly taxes vary from $1800-$3000/year.

It's a 44yr-old building, so I would allow 10% maintenance and plan on a separate CAPEx budget.

Let's put it this way, there is nothing in a deed of trust that can't be adopted in a partnership agreement.There is nothing in a note that can't be agreed to in a partnership agreement.You will likely be held to principal and interest only being secured my any loan arrangement, you can do the same thing in a partnership agreement.A lender can't force a sale (besides through foreclosure) nor demand a property to be sold at or above a certain price, partners or owners can.I had a few borrowers that I wish I could have fired, going over budget requiring more money to be poured in to save a project due to screw up, but as an owner or controlling manager I can fire a partner, make him go sit in a corner so to speak and if I go over budget, it's my fault since I have the purse strings.

You annual budget is a good one so use it wisely.

I'm currently working with a realtor to find me a property that fits my budget

I agree with @Aaron Montague Get all your potential costs together and budget over a fixed time for those potential events (Water heater, Roof) never mind using percentages.

Not sure how much he spent on grading and tree removal, but I'm sure it wasn't that much of the overall budget.

I'm in the middle of this nonsense as I write this, which the listing broker states is targeted towards investors, and not O/O.I walked because the 2nd bathroom in the basement is not permitted, and my guess is that it will cost a great deal to bring it to code, which completely throws off the budget, and I consider that a legit reason to walk.All thoughts, comments, and experiences are welcome.

And then you have area # 6 which is mainly East Nash with 37206, 37216 and certain parts of 37207.As far as buying actual apartment buildings, depending on how big & how many units you are referring to, you'd be hard pressed to find a good, full complex for sale, rather maybe look into multiple units for sale in an already existing complex.After being in the Hotel business for awhile, I know that there are a lot more day-to-day maintenance and liability issues, management costs and other misc factors in running a big complex that could add alot more expense to your overall budget, slowly eating away at your bottom line… You may have to think about and budget for the following: pool, dumpsters, common grounds, insurance, exterior lighting, signage, landscaping, security, employees, etc...