Of course with me paying the mortgage she is spared not only the credit card interest but also the home insurance and property tax payments.

You will use this percentage to figure and multiply it by the following household expenses: maintenance, interest, property taxes, insurance, and utilities.

It cost about 30 bucks here in NJ to file - pretty cheap insurance in case tenant decides they want to play games.

Insurance: $1000Property Mgmt: $0 (DIY)Maintenance & Repairs: $6,000Advertising: $200Utilities: $800NOI: $10,804Cash Flow: $4,326 Annual ($361 p/Month)Cap Rate: 8.83COC: 14.28%If my math looks ok, then I have a couple of follow up questions: 1.

Purchase price 60k cash.Montly income 8400.00 annuallyannual insurance 495.00annual tax 1015.00 per 2011 yearleaves me with 6890 NOI before R&RROI 11.4%Home is out of state and would use as a potential vacation home in between tenants.

Title companies provide insurance that sellers buy for buyers that guarantees the buyer is getting a good, clear title.

The house is part of an estate and I know insurance says replacement value is $85,000.00.

So, say the title insurance for the new buyer was $1000 and there were $1000 in other costs.

Okay did a wrap with a seller.Added as a additional beneficiary on the policy.Policy comes up in March.Insurance company was fine putting me as an additional insured but then the owner of the company calls the seller a few months after closing and said his employee never should have told her that.She doesn't have any written communication or a recorded call from the employee saying it was okay just the phone call before the closing happened.Now the owner of the insurance company says he wants to see the seller back on title before he will renew the policy.I mentioned I could add her as additional insured and she said the lender would be required to have her as primary.She is freaking out about the insurance issue and thinks the lender will call the loan.She wants a quit claim back to her and an agreement form her attorney that I manage it but still own it and I can buy her out at a later date.I told her I would not agree to this.We have completed substantial improvements to the property and have gotten out the bad element.What I have come up with I believe will shed light on her true intentions.I am thinking of creating a Joint Venture partnership or something similar where she is given 5% non-controlling interest in the property.This would add her back on title and then the insurance should not be an issue to renew.I am checking with an attorney on this now.Want to get thoughts on this issue.

The info I do have is:Initally put 20% downRefinanced last year at 4.75% fixed for 30 yearsMonthly payment is $952 (if she indeed has 30 years left on the loan, my guess is that the balance is $183,500)Annual taxes/insurance is $1800HOA fee is $49/monthHas been able to consistently rent it for $1500/month with tenant paying utilitiesFrom that, it looks like someone taking over payments could rent it out and make $4078 annually.