My calculator assumes some slightly different numbers: Property management is 10% of gross, Repair reserves are 10% of gross and $50/annual permit fee.

They will know about the local building codes, permit costs, etc. and my be able to give you a general idea.Best of luck.

I have lived almost exactly the life that RK says does not work: I went to college, got a degree, got a good job, and invested the extra in stocks and mutual funds.

I would be so grateful, nothing extra just the basic agreement to purchase, escape clause, assigntment of contract, and/or lead paint disclosure.

All multiple layers of LLC's does is make work for lawyers and accountants.Not to mention you can likely get a LOT more protection with a liability policy for the cost of all of that extra work.

A small example of this was the very first rental I got was already in decent shape, but I really went through and updated it as well as added a permitted bed/bath combo in some existing unused open space (if you can't do the work yourself or don't have a trustworthy contractor, it makes a lot less fiscal sense).

Really that simple.Of course, the pitfalls are:- Extra time/effort/risk in permitting- Extra holding costs- More risk to the budget- More risk to the project if you're experienced/comfortable doing additionsI think this is something that any serious rehabber should have in their arsenal, as when inventory gets tight, these types of deals are often the ones that are available/profitable.

My tenant has at least 4 extra people in the property that are not on the lease, that totals 9, she just signed her lease this month.

We like the idea of investing in real estate to generate extra cash flow.

Not sure if they burn off extra gas??