Howdy @Garry DeFilippisYour expenses are missing insurance and PMI.

This is the first Fannie Mae financing.The RatiosI am wanting to build a fourplex and then refinance to own as an investor and even own one as owner occupied.If I understand it correctly - it works like this....1) New fourplex monthly income and expenses projected by appraiser Rents of $1500 each unit Taxes at $1060.00 Insurance at $120.002) My gross monyhly before tax income $8500Less my debts (credit cards, loans, cars etc) for first level.

Other than not being directly involved with the real estate (homeowner is responsible for repairs, taxes and insurance-which can be considered a pro) They claim their default ratio is 3% and that they have no problem getting homeowners to purchase.

I would also be sure to ask for proof of insurance or a bond...referrals, images of past projects, etc.

(attached)NOW, here I am left with a house in disrepair, continuing to accumulate city violations (next inspection is due May 31st), renovation insurance, nuance fees for emergent boarding up the home and garage due to squatters.  

What you should do is locate an insurance broker in your area, and the broker should be able to locate an insurance company for you.

This is not your problem, make an offer if you want, get title insurance and have Your attorney review the Exceptions.

(Utilities were rounded up on my part)The asking price is $115K (in a very small town, but the biggest town within a 50 mile radius).Monthly Rent                                          280010% Vacancy                                        -    280Gross Monthly Operating Income     252010% Property Management                   28010% Repairs Maintenance                      28010% CapEx Reserves                                280Property Taxes                                          280Property Insurance                                   200Heat                                                             270Electricity                                                    225Water                                                             75Monthly Operating Expenses              1890   Total Annual Operating Income           30240 Total Annual Operating Expenses     - 22680Annual Net Operating Income             7560Purchase Price                                    115000Cap Rate                                                6.57%25% Down Payment on Loan             28750Loan Amount                                        86250Closing Costs                                             300Length of Mortgage                             20 yrsAnnual Interest Rate                              5.0%Total Annual Debt Service                  6831Annual Cash Flow                                    729Monthly Cash Flow                                  $60Cash on Cash ROI                                   2.3%When I first saw a "6 unit apartment for only $115K" I thought it was a gold mine.

But, due to the way that the condo bylaws are written, and the fact that I carry insurance with the same insurance as the association, I had very little out of pocket expenses.

You can purchase an investment property in your name and protect yourself by putting an umbrella insurance policy in place.