View report*This link comes directly from our calculators, based on information input by the member who posted.Hello, I am reviewing this potential rental property and I can’t figure if I am being too conservative with my expense assumptions.

They much more expensive than a regular 1031 (think $4K - 6K more)2.

One is your home the other is your rental.If both units are the same size, then you split the interest and taxes.For the rental, you take deductions such as depreciation, and actual expenses.

It can be very expensive with the cost of an appraisal nowadays.

Errors can get quite expensive.   

They are tricky loans, lots of got yas, and more expensive from an interest rate perspective. 

Doesn't have to be anything fancy  and expensive written by an attorney  but just something that outlines the scope of work  estimated start and finish dates  and Cost of work.

Here are the numbers:Purchase price: $130,000Down payment: $32,500 (25%) (conventional)                             $26,000 (20%) (private)Interest Rate: 5% (conventional with principal and interest payments)                         10-12% (private with interest only payments with balloon at 24 months)Appraisal value: $205,000 (this is what it appraised for before any work has been done)                             $280,000 (estimated after reno)Rents: $1,400 (already rents for this before purchase with 2 of 4 units occupied)             $3,000 (once units are renovated for occupancy)Estimated Expenses: $1,300/month (during reno)                                      $1,700/month (after refinance)Estimated Cashflow: $-100/month (during reno while I live in flip)                                     $800-$1,300/month (after refinance, estimates are depending on interest rates and conservative estimate)Let me know if you need more numbers for better clarity.

Price is $275K, he won't carry anything back45 spaces12 lot rent28 park owned (would sell those to tenants on owner financing/rent to own to get to lot rent)5 Vacantpark homes rent currently $400-425lot rent currently $125- I think market is 175-200, but not many parks around so has been hard to get numbers3 bed houses rent in nearest large(ish) city of Florence SC (30 mins away) rent for $800-900city water and sewersmall park footprint wise, just 2 roads- 1 paved 1 dirt- and all houses in the middle of it, very small footprint, tight parkArea:Marion SC, super small town, but is 10 min from super walmart, 30 min from Florence, that is the nearest MSA (technically Marion is not in one)Marion small, slowly dying town; Florence growing, solid city/townFlorence metro good growth since 2000, like 17%, low unemployment, everything looks solid there.Numbers:I am pro forma-ing it at $150/space lot rent, 40 spaces, $6K/mo, after 45% to expenses is $3,300/mo net/mo... which is $39,600 net/year14.4 cap on property pro forma12 cap on property based on 125/mo lot rent at 40 spaces.

I have never done a deal, but i am currently in the "im just ready for it now" phase..My question is, Here in the California market (stockton specifically) is getting more expensive as bay area movers are comong down here(san jose,frisco,oakland) and IKNOW we are due for a nice grow..But!