Budget for 5%-10% CapEx — not based off percentage — calculate how much the item would cost to replace and how long it has until it needs it then do the math — (roof, water heater, appliances, driveway, HVAC, flooring, plumbing, windows, paint, cabinets/counters, structure, components- garage door…, landscaping) Closing costs — around 1.5% property value RehabDetermining Cash FlowJust subtract income- expensesCoCROI (cash on cash return)Total Annual Cash Flow / Total InvestedRule of Thumbs General guidelines and not strictly accurateThe 50% Rule A rental property’s expenses tend to be about 50% of the income, excluding the mortgage P&I CashFlow = (total income x 0.5) - Mortgage P&I Helps just to quickly screen a property for further researchThe 2% Rule The ratio between rental income and purchase price Property’s monthly income must = 2% of the purchase price or greater The percentage varies on the areaCh. 6Investing While living in an Expensive AreaSunday,September 8, 20199:21PMAre you looking for homes on sale?

I had to cut the garage I was going to add because the electrical had looked all new.

I am closing on a property now in IL, that has 2nd house and address build in & over 2 car garage, and they didn't seem to have an issues with it. 

Or another one that is smaller (In sq ft and bedrooms but has unpermitted garage conversion) and is Partially renovated and it’s thats 34k cheaper. 

Indy and Kansas City are both affordable markets, they cash flow well and have growing populations and jobs with diverse, modern economies.

@Dino Ganas May want to look towards a home with an ADU option (garage apartment/mother-in-law unit) on property.

It seems almost like a hack/BRRRR since we are acquiring a rented unit with reliable tenant, a 5 bedroom house we will live in, and additional 1200 sq ft we plan on converting to a 2bd apartment and all will have their own garage. 

Is anyone buying up multi-family properties with large garages?

whats best Garage shelve design?

There is no garage and parking is either on street or in the back yard via an alley entryway.