Hopefully they can help us both speed up the process a little.

The first one can be the hardest and then the learning curve speeds up dramatically.

So I have adjusted the purchase price from $189,900 within the 4-year period of time to $175,000 x 1.03 = $180,250 if they exercise it within the first year, x 1.03 = $185,657 if they exercise the option between user 1 and 2, x 1.03 = $191,227 between years 2 and 3, and $196,964 if they exercise the option between year 3 and 4.The couple requested to do the step up method rather than locking the 4-year price in at $189,900.

What it found is that unleveraged residential properties outperformed everything else on a risk-adjusted basis in both the historic and modern eras.

Make sure you work with your management company to determine how long it will take to complete the renovations.I'd say once you are below the market vacancy rate, you can start to raise the rents on new leases for a period of time to see how it goes and adjust back to the normal rates if you aren't able to rent the units at the newer rate.

If I adjust for three of the units paying their own electric than my approximate electrical usage drops to $2066 per year which increases cash flow to $5,248 annualy.Here are my numbers as they currently stand:  Assumes $700 mo for the owner occupied unit than 500, 550 and 350  monthly.All tenants are on a month to month so I am not locked in with them so if they don't wish to pay their own electric I can move new tenants in.InputsResultsPurchase price:$105,000Down payment amount:$21,000Scheduled monthly income:$2,100Total out-of-pocket expenses:$22,200Other monthly income:$0Vacancy rate (%):5.00%Debt Service Calculations:Number of Units4Blended rate:5.500%Financing information:1st loan amount:$84,000Down payment (%):20.00%1st loan monthly payment:$4771st loan portion (%):80.00%2nd loan amount:$02nd loan portion (%):0.00%2nd loan monthly payment:$01st loan interest rate:5.500%Total annual debt service:$5,7231st loan term (yrs):30Amortization (yrs)301st loan closing costs:$1,200Income and expenses:2nd loan interest rate:0.000%Gross scheduled rental income:$25,2002nd loan term (yrs):0Gross other income:$0Amortization (yrs)0Total gross income:$25,2002nd loan closing costs:$0.00Less vacancy:-$1,260Total annual operating expenses:-$15,114Operating Expenses (annual):Net Operating Income:$8,826Real estate taxes:$2,300Annual cash flow:$3,103Insurance:$900HOA dues:$0Management fees:$2,640Rates and ratios:Legal expenses:Capitalization rate:8.41%Marketing:Cash-on-cash return:13.98%Landscaping and snow removal:$0Debt service coverage ratio:1.542Maintenance and repairs:$1,320Reserves:$528Other Calculations (precise in one-loan scenarios):Supplies:Minimum desired DSCR:1.2Other:$0Purchase price to support minimum DSCR:$134,935Landlord paid utilities (annual):Average Cap Rate Supported (based on local area):9.6%Garbage:Water and sewer:$2,052MAXIMUM purchase price to support required Cap Rate$84,730 Electricity:$4,210Gas:$1,164Phone/Cable/Internet:$0

Look at the inside of your nearby comps with the pictures and make adjustments for quality accordingly.

Banks understand this and will adjust the underwriting accordingly, just because you claim to be in the business, doesn't mean you are afforded the real, in reality, provisions of a business, you are still personally liable.   

Purchases of new homes climbed 7.8 percent from the previous month to a seasonally adjusted 539,000 annualized pace in February, a seven-year high, according to the latest U.S. government report.

Public Insurance Adjusters 2.