b) Capital Reserves: You should also include a capital reserve, $300/unit is typical for a 1970's-1980's property depending on when it was last renovated.c) Real Estate Taxes: Check the current assessment at the tax appraisal website and make sure to use at least 75% of your purchase price when calculating future real estate taxesAfter making these adjustments, you can figure out the correct NOI and thus the correct cap rate.

If the SFRs are in different types of neighborhoods or different types of houses, you need to adjust accordingly for the changes to achieve an accurate value.

I look for the most identical properties I can find that have recently rented in the immediate neighborhood.

.- Fix the remainder of the damaged exterior window trims- Some touch up painting- Install door bells- Put on house numbers- Replace bit of shingles on top of bay windows by kitchenInterior:- Drywall patching/painting on ceilings and walls- Remainder of cabinets- Flooring for upstairs- Install all new light fixtures- Install new doors for upstairs- Replace/match base trim where adjustments had been made- New door knobs- Curtain rods & curtains- Removal of carpet in living room (kept there for now as it's protecting the HW floor underneath)- Lots of cleaningThere was someone who flew into Milwaukee from California this week and yesterday I took them on a tour of this house. 

This is the same building where I had tons of water leaking at the meter, replaced the line, and got a credit back on my water bill.The high tax bill is from a $1348.38 "sewer service" fee.I called the office and they said if I send the receipt they would adjust the bill within a week or 2.

Have to be sure to ask what their terms will be -- ie 5 year fixed, then adjustable - 20 year amortization period, 5 year fixed, then balloon payment or refi would be required etc.A person I met yesterday advised me of a bank I plan on talking to myself - Stockman bank or Stockyard bank -- something of that nature in Arkansas City -- may be worth a call -- he had received favorable terms on investment property and found they were easy to deal with and they kept his loans in house.One strategy I plan on using as I look to take on more acquisitions is what was discussed in this Bigger Pockets PODCAST -- Will re-listen to it again, however Jared described having a business plan, and putting together a packet for the lender...I believe his experience would prove to be right that most people dont do this and the bank will take you more seriously if you provide them with this info.

Have your attorney adjust the operating agreement to suit.

Hello all,I was contacted just recently by a seller whose home has the following challenges: In pre-foreclosureHas not paid the mortgage in 2 yearsRented the property and was not eligible for refinance as a homeownerHas an adjustable rate mortgageTaxes have been paid by the mortgage company for the past 2 yearsIs there any hope for this property? 

However, they listen to the users and are constantly adding, adjusting.  

To get a real value, you need to look at sold comps and subtract out any buyer kickback from those numbers, adjust for amenities, and adjust for condition/repairs/etc.