This doesn't include closing costs.Mortgage 2 = $16,667 @ 12% interest only, 5 year balloon = $167 per monthUtilities - if Landlord pays utilities, need deposit for water, trash, electric.

I'll take an exacting look tomorrow.From the napkin:550125/month mortgage(16k+4k for 20k financed) 4.75% over 30 years.No trash, no sewer and water, no utility payments by you150/month for general maintenance, cap exThat leaves 275.Vacancy takes 55/month(10%). 220 left.Insurance is probably another $70. 150 left.Management is the last $50.

September is particularly nice and the water is still warm.The property management is high and in some resort areas they charge 1% to 25% of the gross rent.

The Biggert-Waters Flood Insurance Reform Act of 2012 goes into effect Jan, 2014.

What happens if a water line breaks?

I'm planning to speak with my CPA and put the other unit for sale (realtor has said it could sell for 90k due to a water view) and get into another quad in 2014.

For example most water and mineral leases get recorded and thus must be notarized.

The tenants pay their own water and sewer?

I never worried about the insurance that much since we did not have that much cash in it.. if we lost 10 to 30 k in a fire ( which never happened over a decade and over 100 of these so what.)your last sentence is where I have seen many many folks come to me to bail them out.. in very hot water.. some of them got turned into the AG.. not pretty.I would not do this thinking this is how you build long term holds. to me this is get into title value add sell make your dough pay the sellers mortgage off so they can go borrow again.. 

@Sherrie P.Vacation rentals can be quite lucrative whether they are on the water or not.One caution about waterfront they are re-drawing the flood plains zones around here and are quite liberal.