Assuming that maintenance and repairs will cost 20% of gross rents (I believe this number to be way north of what it will actually cost) we arrive at $1,015 for maintenance and repairs.I will also have an extra $2,000 in a revolving CD ladder as a slush fund to fix whatever Murphy's Law throws at me.So:Gross rents: $5,076Taxes: $701Insurance: $766Debt service: $2520Maintenance and repairs: $1,015Cash Flow: $74I realize this will be basically a wash as far as cash flow for the first year, but I think I have all my bases covered as far as projecting what expenses will be.

I am asking because I am involved in such a project that sells these sites and the customers seem to do quite well.

I have some experience in this and would like to help with anyone who is new to rehabbing or anyone who is stuck etc.Is anyone here beginning a rehab project on a home soon?

There is still no substitute for real-world experience, books can help but you will learn the most from actually doing a project. 8)

Wheatie, one of the ideas I still have a tough time with (as it relates to the 50% rule) is how to adjust projected operating expenses for high property taxes.For example, there is a two family house that rents out for 1k p/m, total (12k p/y).

.), and "show money" loans ( for projects that need to show cash in the bank).

My first question is i was reading a book and they had an example of the cost when doing the project and one of the was Holding cost can anyone explain this one to me, this is the cost of holding the house and paying the lender cost each month right ?

I am a Realtor and a project manager my fathers home building company so i have all the resources to start investing.

What are some of the projects that you've worked on?

I wouldn't base any income projections on leasing billboard space unless you know the local codes applying to billboards.