Offer Price: $200KFinancing: FHA loan, 3.5% down payment (already pre approved for this home); 3.875% rate, 30 year fixedRents according to MLS posting: Unit 1 - $1310, Unit 2 - $1100, Unit 3 - $720; Total = $3,130Expenses: I'm forecasting 57% in expenses (more conservative than 50% rule) --> Property taxes - 4.6%Insurance - $1000 policyRepairs/maintenance - 5% of gross monthly rentUtilities - 1% of gross monthly rentCap Ex - 2% of gross monthly rentVacancy - 10% of gross monthly rentProperty management - 12% of gross monthly rentMortgage + PMI = approx $1,043 monthlyCash Flow (monthly): $163Cap Rate: 18.8% (gross annual rents divided by purchase price, correct?)

Most cities release them, just to get the property back on the tax roll.

@Christopher Telles  I bought my sub 2's pre 08  and quit when the anti pre foreclosure and equity stripping laws were passed in Oregon and Washington..

I am working on a deal where the heirs say "the state owns it" and when I call the treasurer, they say that the property is in the decedent's name. I searched the deed and confirmed that there is equity and I would lo...

I was offered a pre-approval  loan through my credit check service and they offered me a loan of $10k with 32% APR , which I didn't understand since they are the ones said I had a 715 credit score, I didn't take that loan.

Flipping first and then some buy and holds to get the passive income wheel rolling.

Do you always do a pre-closing walkthrough to make sure that things are still in good shape?

UCLA says the buyers today are buyers who want to stay in the home, especially first time buyers vs the insanity pre GFC.

Your math is right but something's missing to explain why it doesn't add up.Keep in mind that on top of the interest owed and principal payments due, they'll add in taxes and insurance that they've paid and any corporate advances such as pre-forclosure fees.

Could something be added that the tenant must also return the door to it's pre "doggie door" state when they move?