Hi All,I'm one of millions that have found their beloved starter home under water and instead of bailing I'm doubling down on a rental transformation.

Water/Trash 230/moApprox 490/mo Cashflow - I would be splitting this with my partner245/each (my portion would be used to payoff my heloc $100 interest only payments - I would be paying off any principle with extra cashflow)Please help me analyze this deal.

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?