The money you spend on the property itself would go in to the basis of the property to calculate your gain on the property.

@Steven Lebischak, it would be nice to think that your $1400/m tenants would just be happy to pay you more than they'd be paying if they bought a place themselves, forever, but, you should allow around 1 months vacancy each year (rather than the 3% vacancy allowance I see on many of the pro forma "Calc Review Reports").

Busy brokers tend to not have time to spend heavily on small properties that make them a smaller return.There is a difference between transaction only and giving an investor heavy education on how to buy and evaluate etc. 

The word is out... it's the place were I grew up and spend time with my brother and family.Beyond the city of Lancaster, Lititz is a great place to check out too.Good luck! 

Of course, you'll still want to thoroughly review it and perhaps have an attorney look it over.

The problem with allowing this behavior is that you are training them on how to treat you and they may be likely to pull the same thing in the future cause as they may think that you are a pushover-   Now they may be long term tenants with a good history of payments and this may be a special situation that they need to get over and obviously that merits a case by case review - but generally speaking   you should start the eviction process as soon as  your state allows - it is always possible to cancel it if they pay and you choose to accept it - but at least you will let them know that non-payment is not an option that you will put up with.

If there is an opportunity to improve the property, you might be able to spend a modest amount and get that to 40% equity.

View report*This link comes directly from our calculators, based on information input by the member who posted.

Sometimes you also gotta spend a Sunday night fixing a fence gate.

All,Please help me analyze this property. I included a monthly insurance of $120. This would be my first property so I don't know if this is an accurate number. The annual taxes were taken from the MLS and I would liv...