No...there are labor costs in the tearoff (most physically demanding part of the job) and the upfront costs of the ordered shingles that are delivered on-site at your property in addition to dumpster rental that is charged at a higher rate because the weight of shingles only allow 1/2 a dumpster to be filled and the costs of laying down the tar paper immediately after the tearoff is complete as you can not just leave sheathing exposed to the elements while you wait for the next check.With 1/3 upfront, the truth is the contractor is out of pocket by day 2.

After today's 9% drop, that would be an additional 25%-50% fall.

A $240K note at 7% is less than $1500/mo. and I can get $1600 + additional $300/month towards the option.

You should never buy a rental property based on projected appreciation neither on cap rates alone.You need to look at the actual NOI based on the books, and take into account:- the additional operating expenses that may occure after the transfer - the vacancy rate - the improvements quality, age and condition (calculate the replacement or repair costs over the next 20 years)- the accrued property taxes liability you will have to carry after the transferIf you take into consideration all these factors, i bet you won't find many properties with positive cash flow after debt collection and taxes

Sorry to kill the fun, John . . . that said, our glossary is in need of some additions, that's for sure.Anyone interested in helping?

Improvements, like an addition or major remodeling would increase your basis.

Remember that in addition to the "normal" expenses encountered with ownership in these properties you will have more breakage on furniture, dishes, sheets, towels (you will be providing all of that) and it's not like a rental across town that you can pop in to fix a garbage disposal, replace a bad fridge etc.

Looking through the site quickly there is a statement that state fees are an additional charge.

They are responsible for their own insurance in which my bank and I are listed as additional insured.

Some additional background about me is that I'm self-employed making a good living, own a house and a credit score of 760+.