The county is assessing the value at $72,200.Seller stated she had a long list of people wanting to rent it at $950/mo each time it became available.

It has additional square footage in the basement, which is divided so each unit has its own private area.INITIAL INVESTMENTPurchase Price $110,000Fix-Up $10,000Closing Costs $2,000Future Cash-Out Refi Cost $2,000Outstanding Tax Assessment $2,500City Change of Ownership Fees $1,000TOTAL = $127,500INCOMETotal rents of $1800/mo: $21,600Vacancy+Bad Debt (10%): ($2,160)TOTAL = $19,440EXPENSESMaintenance ($2000)Utilities ($1600)City Fees ($140)Credit Checks ($100)Insurance ($1500)Taxes ($2000)TOTAL = ($7340)RETURNSNOI = $12,100Monthly raw RV ratio = $1.8k/127.5k = 1.4%CAP Rate = 9.5% against $127,500 initial costTotal Return = Depends on leverageI would plan on this being a long term hold with an eventual exit to another investor, owner occupant, or via a rent-to-own land contract.I would be more comfortable with the deal if I could get the purchase price down and achieve a 10% cap rate.

Tip: Check your county's Property Taxes Records or Assessors website.You can learn about a house:Property tax amounts.Owner of property.If they owe back taxes.If they owe on their utilities.Fair Market Value(What the county thinks the house is worth to assess property taxes.This information can be used when:Finding a house on the market, that selling for less than the Fair Market Value.The Fair Market Value is the county's appraisal.This number can be off + or - $20,000 on real appraisal.A tenant says they have no landlord reference, because they used to own a house.

When any buyer counters they counter to a price of their liking based on their assessment of the asset.

Some information from 6 or 7 months ago when we went over his expenses:Warehouse Unit for business parts & storage ~ $350 / monthAuto Payment - ~$300 / month (roughly 3 years in to a 5 yr loan)Auto Insurance - ~$50Gas - ~$200 (could be higher, drives a lot on service route and delivery)Utilities - ~$200 / monthCell Phone (which is also his business phone) - $75Food - no idea.Cable & Internet - I think he cancelled this, not 100% sure.My basic approach is going to be first, get an honest and accurate assessment of his expenses.

I thought that the tax benefits are one of the reasons RE is a good investment, so to ignore them seems odd when assessing a deal.

Before going on to the 4th manager, I think you need to assess exactly what's going on in an objective way.

Lisa Phillips your assessment of those working for baltimore city is 100 percent correct.

Some things to think about: Be prepared for special assessments; this is where deferred maintenance that the HOA has put off gets charged in a one-time fee to each of the property owners.

I've contacted the PVA for assessed value and tax figures and am waiting to hear back.Supposedly was NOT a rental and was owner occupied.