My father in law was just telling me that he had a place that someone broke the outside spigot by using it in freezing weather and not draining it so he ran out, cut the pipe off and threw a sharkbite cap on it to fix it until spring.

- You'd get a higher LTV allowance if your properties were 1-2 units---most lenders are going to cap you at between 75-80 LTV (you could expect to secure up to 85-90 LTV if they were 1-2 units).- Expect to have cash reserves (most lenders will want 6 months).

The flooring and paint can be livable, but not great.If you purchase the property, leave it as is, and find tenants paying the same rent then you will have a cap rate over 30%, which is good. 

Any profits above this return will be split 75% to him and 25% to you as compensation for your management fee.You could charge only an acquisition and management fee instead if he feels the split is too rich for you or you could offer to cap the 75/25 split at a certain dollar value and thereafter, it defaults to a 90/10 split representative of the cash contributions.

So it's an 8 cap? 

Hey BP,Been reading through BP and talking to several people - several discussing how it may not be the best time to invest in SF or MF homes in Columbus due to increasing SF home prices and decreased MF cap rate. 

Especially if it is an older property (Maintenance costs, & cap ex, alone can through you into the red pretty fast if you don't have the cash flow and savings to cover things)  I think the loan pay down, tax benefits and appreciation are all great things, but cash flow is going to contribute some of the money for your next investment.

If you are looking to still move forward with the condo take a look at if the HOAs have any rental caps, restrict STR, and understand their finances.

Look at their cap rates to understand what cap rate this property should sell for.

Value is expressed by dividing the income stream by a cap rate.