Finally, make sure that your utilities are split on multi-families.

This works well because I've established a goal of purchasing one property per quarter.

You will have a bit higher costs with the 2 properties vs. 1, but this seems like a no brainer to me.Assuming you do get the appreciation in one and none in the other two, you're looking at about $1350 in appreciation each year that can only be utilized if you refinance (spend money for a new loan) or sell.

Typically your rent should cover everything like PITI, repair and maintenance, etc and your tenant pays for utilities.

You also should have pre-established goals ahead of writing ANY offer.

My neighborhood is quite established and is currently experiencing a growth spurt with a large mill being renovated to apts and retail, at least 2 other large scale apt/condo projects under construction.

The utilities / street's are done / plans are included for 8 additional units on the vacant lots.The seller's bottom line is $1.25 m for property with 0 help to closing costs.

Month-month leaseEach unit is individually metered and tenant pays utilities except for the following:Electricity for section 8 tenant only (2,100/yr)Water + Sewage for entire house (1900/yr)Property Taxes: 7,808Insurance: 1,500 per yearSummary: (annual basis)Rental Income: $37,260Operating Expenses: $13,308 (35.7%)NOI: $23,952Mortgage 30 yr @ 5%: $10,307Net Income: $13,645 $4548/UnitThe following expenses were receieved from the owner.

This is a commercial lender (not using GSE underwriting) where we have established relationships.So, to answer...

But that area is well established and in a good school district.