And it can scale with the amount of debt and equity injected into the deal.

If it happens right away, you will still take a kick to the cash flow ... or, if you have not managed to build your contingency, you may need to inject more capital into the property.In our operating expense calculations we allow a 10% maintenance and CapEx set-aside each year ... unless we are buying a property with known higher amounts of deferred maintenance, where we sometimes use a 15 - 20% set-aside.

They can either tent the house, or "spot" treat, which is injecting chemical into the walls wherever they see signs of them.

IN OUT INITIAL 29648 <<-down payment and closing costs 2009 -2100 <-3 months 2010 -3667 2011 859 2012 11005 448 2013 7985 2014 3244 2015 7405 2016 587 2017 -25965 2018 5710 2019 -9448 <-3 months TOTALS 40653 -14942 WALKAWAY 85898 Total holding period 9.5 years IN=injection of cash from owner's savings OUT=cash flow of building

Just another way of saying that you can not inject all business financing ideas or concepts with small business, it is not practicle nor is it relevant to a small investor.

It may just be better to sell the property or find another one that will cash flow better without a large cash injection…Take care!

Doe the property require an immediate cash injection to get things going or is it something that can be gradually dealt with from the profits of the property?

While I don't get the quick cash injection that I could make from selling at or a lesser price than the other dozen (12) homes in this small town, I could still make a sale and reduce my management need.I would ordinarily do this contract with a typical 3-5 year balloon, but in order to satisfy cash flow desires, ease of management duties, and to make home ownership achievable for this couple, I am considering these terms instead:Sale price of $55000.Interest @ 10% amortized at 10years.Payment Term 10 Years.Result: 120 payments of $727 = $87,219.  

This is why a lot of investors who don't have much of their own cash to inject into the deal don't do FNMA REOs.

It's injecting value right back into the hard earned currency of the east coast.