Purchase Price: $710,000 +/-Units: 12 (All 850 SF 2 bed / 1 Bath units)Current Monthly Rent: $9,300/mo (There seems to be room to push this to at least $9,700)Annual Rent: $111,600 + other income $905Vacancy: 5% (Property is currently 100% occupied with strong occupancy history)Effective Gross Income: $106,925Taxes: $9453Insurance: $6588Management: 5% (will be partially self managed) $5,079Utilities: $6,302 (only common area electric and electric heat, all other separately metered)Septic: $1,000Repairs/Maint.: $16,450Marketing/Promotion: $1,431Trash: $1,961Supplies: $1,579Water Testing: $3,177Misc: $350Total Expenses: $53,370NOI: $53,555Cap Rate: ~ 7.5%Cash on Cash: ~12% (based on 20% down and 30 year am at 5% - still finalizing loan terms so subject to change)DSCR: 1.46x50% Rule ($/unit/mo): $117.171% Rule: 1.31%GRM: 6.36Debt Yield: 9.55% (based on 20% down)Property is in overall good condition but could use some upgrading.

Or are you a lone wolf, a one man team?

What are the annual expenses?

My goal is to have a net positive cash flow of 24K/annually within a year.

Usually in less than 30 days (or I don’t do buy in the first place).The input in the post only allows for a 20% annual return.

The idea of doing 25 separate corporation reports, 25 checking accounts, 25 tax returns, 25 annual meeting and minutes, keeping track of 25 corporate books, etc would be a nightmare. 

He says he makes very good money (more than enough to qualify based on annual income), but it all comes in the 3-4 months over the summer. 

FLOORS: 3 UNIT 1: 2 BDR DUPLEX UNIT 2: 3 BDR, 2 BATH DUPLEX YEAR BUILT: 2006 LOT: 24’ X 60’ ZONING: R5 RE TAX 15/16 $3,028 INSURANCE: $1,200 W/S: $480 GAI: $44,400 ANNUAL EXPENCES: $4,700 NAI: $39,700 CAP RATE: 10% Would it be a reasonable question to ask the owner of this property, get all of their financials.

Great way to pick up some good info and possibly a deal.I have listed below some Rules of Thumb we use.Good luckPaulExpensesTaxes  (80% Purchase Price) x (Mill rate) = TaxesInsurance $250 per door (this could be higher, depending on if property is closer to coast, the claim history, if in flood zone, etc)Repairs & Maintenance (R&M)  $300–$600 per door Contractors and material, Carpet Cleaning, Keys and Locksets, Make ReadyGeneral Administration  $100-250 per doorManagement Fees Typically 4% of Total Income for larger propertiesMarketing/Advertising $100 per doorUtilities Take historical from last year, annualize this year’s, compare & then take the higher of the two. 

However, if I was to make a $10,000.00 annual principal payment( that I will be saving from the $1,590 surplus) I could have this free and clear in 7.5 years.