I'd use it all and keep your cash on the side to pay down the loan and for any repairs that come up.

I have now resorted to putting a "for rent" sign on all of my buildings in a neighborhood where I have a vacancy - even on the buildings that have no vacancy; this gets the phone to ring more, and I explain to the tenants there in advance that I am not trying to rent their place but another one I have that's vacant.I get some referrals from code enforcement officers - typically tenants who are fed up with their present Landlord and are asking about somebody who has properties in good repair and good condition.I also use a service that is called Locators.

She had put on a new roof, and had done a lot of repairs.

Hi Kristin,It really depends on what the after repair value of the house is if you intend to wholesale the deal.A typical formula (some adjustments are made for market strength or location) is that a cash buyer is going to want to spend no more than 70% of ARV minus the fix up costs.

Its a good year for me to do this though because I am doing a lot of repairs on the building which will help offset the gain.

Misc. repairs and expensesI was told that #1 (mortgage) is not in the calculation, so therefore it is going to appear as if I have a greater income than I expected.

I am a handy guy, and used to do some exterior construction (fences, irrigation, arbors etc) but nothing interior short of repairing stuff at my house.

Having veriified the utilities and taxes and insurnace, and allocating $27,252 (verified)annual repairs/upgrades $20,000 estimatedannual upkeep, paintining, etc., $12000 estimatedparttime maintanece man $6000All told: about 69K My CAP rate, if using the asking price of 265K would be 12%Note, I could own that building 20 years and never ever be done with upgrades and improvements.

At your listed ARV, your wholesale buyer should not likely want to pay more than 70% max of ARV less repairs/taxes.

Another issue is drug usage, sale or manufacturing are sufficient grounds for an automatic termination, in fact here, it's an immediate set out but the landlord will need to prove it.You do have the right to enter for repairs, treading lightly on the tenants right to quiet enjoyment, but things can be miserable to the point of a tenant wanting to break a lease too.The story of an Executive Director of a housing authority property is true, where he removed the front door to make repairs to it and the tenant left.