I also think that you should expect about $100 a month in insurance.

Fact is there's a reason seasoned investors are spending over 20k a month on AdWords alone.With that said, I will inform you that it won't always work like how you may expect it to.

How much $$ are you expecting to earn from this unit?

My broker says he has worked with this lender before but this is my first private money deal so I'm not sure what to expect.

I just wasn't expecting to have to spend 5% of gross rents to mow a patch of lawn.  

6.125% is not a bad rate for a commercial/portfolio (Non Fannie/Freddie) loan.How much lower are you expecting to get by refinancing since you can't qualify for conventional?

I was expecting between 800-1500/year..

I would not expect anything else for his insurer.

Perhaps you could have a real estate agent appraise it and give you an idea of what to expect if you sold it in its current condition and what you could get if you found a way to make the repairs.

I want to start investing in real estate and bring in some cash flow. but there is two options that I need help with. there are two locations one less desirable but still you can find some good houses but alot of choices and the prices on the houses are very low. or go to another location where is more desirable but fewer houses I say like 5 percent compared to 80 percent of houses. but the houses are twice the price . you will get better rents but pay higher mortgage. another thing to add. pricier homes have alot less taxes. as a first time investor not knowing what to expect where should I lean too first. thanks guys for the info in advance.