Greetings, Have a potential to purchase a 6 unit (2 house, same lot, 4 unit and 2 unit) The details are as follows.Year built: 1900 +/-2 houses: 1- 4unit and 1- 2unit on same lotList Price 224,995 (assuming a 190,000 purchase price and 25% down payment)ExpensesMortgage 1104.80/month (20yr term @ 7%)Taxes 443.93/month (5327.15/yr)Insurance 224.58/month Water/Sewer 41.25/monthElectric 10.85/monthGarbage 85.08/monthSnow 68.75/monthLawn 54.58/monthHeat 0.00/month (each unit has its own furnace)IncomeUnit 1 - 550/moUnit 2 - 595/moUnit 3 - 650/moUnit 4 - 750/moUnit 5 - 595/moUnit 6 - 225/mo3365/mo Vacancy 10% = 336.50/moRepairs 5% = 168.25/moCapex 10% = 336.50/moProperty Management 10% = 336.50/moAll units in good shape and no deferred maintenance to correct.

What are the most common things that a home inspector misses and is there any recourse you can take after they did not provide you with the correct information?

Yes I think your correct on cap rate for this area 8 to 8 1/2 cap.I will know more after tomorrow.

It would be nice to have the cash flow to pay for property related expenses while fixing it up.C) I could also sell the note if I wanted (but this would incur the capital gains, correct?

My name is Mike and based on the subject and category of this thread, I think you have guessed (correctly) that I am new to the site.  

Yes even though there are only 39 official cities and towns, there are hundreds of smaller areas which have their own names.In some cases you actually have to use the alternate name in order for mail to get delivered correctly, e.g., Saunderstown vs.

If you know the area and run your numbers correctly, you can always find a deal through MLS...

I'm not sure if this is the correct forum to post in...

@Wade Stahle, Yep, Joe A. is correct.  

I have contacted 3 banks that have refused to lend on a property because there are no comparable properties in the area and if the appraiser can't appraise it correctly, they can't lend.