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.  

The original holder guaranteed the initial investment amount and the ROI was a target based on performing note.