They'll have lower cost than a broker but the rates may be a bit higher and on shorter terms.How much of a discount are you buying the property at?

You have to strike a balance between the better financial returns of lower priced houses, versus the more intensive management they require.

Their concern is, if we take a property back, we have to sell it low enough to compete with everybody else's REO.I feel like we are in an environment where banks are actually self-destructing by driving property values down (dumping their stock).They get into a vicious cycle of lowering property values because they are forced to keep lowering REO prices to move them.

Honestly, I had to decline her offer because my take home at closing would have been lower than if she didn't use the realtor.

This isn't a recipe for lowering expenses, it's a recipe for failure (in a hurry).Mike

If you want me to take more risk, then I get a lower sales price on the option.It has taken me a long time to understand all the benefits to the home owner, but now I know and they love the ML as well.

You can frequently get the same program from a broker at a lower cost than what the branch offers.

They listed the home for sale and it has been on the market for the past 9 months, each month lowering the asking price by about $5K.

Please check my math.Taxes =2% of appraised valueInsurance on the safe side is 2% of replacement costTypical 3/2/garage in Broward and Palm Beach counties in a working class neighborhood will safely fetch $1500 now, maybe lower soon.

Property Cost $200,000.00 Repairs Needed $50,000.00 Number Of Units 10 AVG Rent Per Unit $475.00 Gross Schedule Income $4,750.00 Vacancy Allowance 10% $475.00 Gross Operating Income $4,275.00 Less Operating Expenses Accounting $25.00 0.58% Advertising 0.00% Insurance $125.00 2.92% Lawn / Snow $- 0.00% Repairs $85.50 2.00% **Since i guess high for repairs, i lowered this down to 2% Monthly Taxes $458.33 10.72% *** Renter pays Utilities Electric $- 0.00% Gas $- 0.00% Fuel Oil $- 0.00% Water / waste $- 0.00% Total Operating Expense $693.83 16.23% Net Operating Income $- 0.00% Property Cost With Repairs $250,000.00 25% Down $62,500.00 Additional Cash Down $- Remaining Balance $187,500.00 Gross Operating Income $4,275.00 Monthly Mortgage $1,875.00 Total Operating Expense $693.83 Monthly Profit $1,706.17 36% profit My formula always shoots higher on the cost to protect me.