Total development costs?

This is his calculation:Estimated Gross Income : $206,268Estimated Total Expense : $107,515Estimated Property Taxes: $ 16,536Estimated Insurance : $ 8,004Estimated Total Expense : $132,055Net Annual Operating Income: $74,213Purchase Price : $320,000Plus Estimated Rehab Cost : $100,000Total Cost : $420,000ROI : $74,212 / $420,000 = 17.66%Now I don't know how much was added for management, maintenance, vacancy and other operating costi) What would you do from here?

Williamsburg rents $775. leased 12/1/20123. separate utilities4. utilities paid by tenant5. unsure (I asked how old the roof was)6. both have been partially or totally replaced in the last year (HVAC system)7. hot water heater dishwasher (new replacements)8. none known (serious issues)9.

.+ den can be used for office+ the family room was a bedroom before with closet- no garage, two car carport- split level, the living room is downstairs- no formal dining room- location is far from public schools but close to a few private schoolsBTW, total available houses for rent on the market is 9 as of today. 6 are 3 bedroom house and they are all listed with higher $/sqft.

Total garbage.

Here's what I know now:1924 Triplex, total rents of $1935/monthAsking $199k, $40k down, $1335/month seller financeThis guy needs to sell it quick, should I be asking for a lower down payment, lower monthly payment, lower sales price?

But the positives have totally out weighed any negatives.

If you find a guy with 20 properties you will find multiple banks loaning the investor money because most of the small banks limit outstanding loans or cap the total outstanding loan amounts.

Rehab costs = $30k - $40k (total reno) home can be livable for $10k - $15k.

Paying all cash will get you cash flow equal to half the rent.Cash on cash = annual cash flow / total cash investedThis can often be higher with some leverage than paying all cash.If you manage yourself, I think you can cut the 50% number down to about 36%.