If landlord pays utility (especially water, gas, heat) go 60% costs.So for example if you had 100,000 gross income X .50 = 50,000 NOI and if 60% costs go .40 = 40,000 NOIYou take NOI divided by the sales price to get the cap rate.40,000 NOI / 340,000 purchase = 12 capThis is a just a general guideline and much more goes into this.

I'm a Realtor here is Noblesville and my business partner is a successful owner of a heating/cooling company.We have not done any deal yet- but that will hopefully be here soon.Very anxious to network with other local investors and expand my knowledge.

Honestly a lot of deals are not providing forced equity because of how much the market has heated up.

Yes, I am aware it need to have a roof of 5 years' life, and a heating source.

He is in Miami so I view the scenario as an opportunity to expand the asset locations.

The option to change this would be to install a landlord thermostat to better regulate the heating range.Lastly and my future plan is to add another gas meter (utility company will usually do this for free) and separate the ductwork and add a second furnace.

I'd only cash out $127k, because I like to see my rentals bringing $100/door/month.How I see your $2100/month in income against the following expenses:Mortgage Rate 5.00% (you'll probably be able to do a bit better than this)Length of Mortgage in years 30Monthly Mortgage payment $681.76 (0% down on 127k loan)Taxes $458.33Sewer and Water $125.00Trash $-Heat/Utilities $-HOA $-Cap Ex and Ops $150.00Insurance $100.00Mgmt Fee $210.00Vacancy $168.00Total Expenses $1,893.10Total Revenue $2,100.00Cashflow/month $206.90 Cash on Cash Return 45.14% (this is inflated because the only thing you're going to put "down" is your refi costs which I estimate about $5500)

But I don't know anything about the way WA bills sewer and water) Trash $- Heat/Utilities $150.00 (the other half of your $~$3300/year utilities bill) HOA $- Cap Ex and Ops $500.00 (combo of your R&R and R&M lines) Insurance $200.00 Mgmt Fee $530.00 Vacancy $424.00 Total Expenses $4,669.96 Total Revenue $5,300.00 Cashflow/month $630.04 Cash on Cash Return 5.38%

I used to banner tow out of Miami before getting my instructor rating.

I'm also an agent in South FL - I focus on multifamily in Miami.