I formulated a 2 year plan to save 20k , improve my credit and acquire all the knowledge I possibly can.

Driveway other land improvements over 15 years.

This terrible situation is now being addressed and will be vastly improved over the next couple of years.

Plus the improvements I make to the house make their security even stronger.

Explain to them that you will be making improvements to the property and that rents will be increased to compensate for this.

The location will be convenient for a couple years and plan on improving it to meet my needs.

Asking Price: $145,000 Conventional Loan Terms: 30yr @ 4.75% w/ 25% down payment $575 Gross Rent: 2300/month; 27600/yearly Seller Disclosed Expenses (Unconfirmed): Taxes: 1352 yearly Insurance: 1600 yearly H20 & Sewer: 528 yearly Expenses: Using the 50% rule, or 60% for expenses rule since owner would be responsible for utilities (sewer & water): 2300x 60% = 1380 for expense other than Principle & Interest (P&I) Vacancy @10% = 230 PM @ 10% = 230 Repairs/Improvements@13% = 300 Insurance = 134 (seller disclosed) VS. 160 (estimated) Taxes = 113 (seller disclosed) VS 125 (estimated) Sewer & H20 = 132 (seller disclosed VS 210 (estimated) $1380 - 1255 (My Estimated Expense Total) = $125 P&I Payment and Profit: 2300(Gross Monthly Rent) x 40% = $920 P&I = 575 $100/Door Rule x 4(Fourplex) = $400 $920 - $975 = ( -$55)/month As you may notice, the seller's disclosed expenses vary greatly from my estimated expenses.

A Realtor friend brought them to me (who brought all their clients to me I believe) so there was more incentive to get involved in making something happen.What I had were several issues. 1. the borrower had little money on hand but income. 2. they wanted to do the work, this couldn't be allowed as they were not in construction and their skills could not be shown. 3. had a buyer in line, but not as is, it had to be brought up to market. 4. the owner had limited equity, perhaps 15% based on the as is value.So, first was to make a future advance note, similar to a HELOC or construction loan as a second mortgage.Had to look at repairs and improvements needed and at what point each "phase" would be completed and increasing value.I had a contractor and got him involved.

I have considered getting the place appraised before making improvements but have speculated due to the fact that the bank is going to make me pay for an appraisal when I do a cash out refinance.

I want to improve my email marketing method of sending new deals to my clients.