More importantly, my borrowers never call me when their toilet is clogged or the roof is leaking, yet I still get monthly cash flow from that asset.

Holes in wallsBleach and grease on carpetingA dish installed on the roof of the house.Locks changed without my consentand..... you get my pointIt is a toss up, as to whether or not you charge them now or later. 

I for one like 2-4 unit multi families because you can get more units under 1 roof and still be considered residential.

JV With the Seller - Minor RehabDeal Details - Granny's House ARV $300K40 year old house - Free and Clear, good neighborhood, all major items in good shape, from roof to foundation to HVAC.Problem, the house is dated.  

It is a 0% interest loan that will do things like de-leading, windows, roofs, and other items to bring low income families housing up to snuff.Some towns seem to have a 15 year forgiveness clause built in.

Market desirability of the exact same NOI could decrease in half over just a short period of time.The cap rate is EXACTLY the same for two properties next door to each other but the one that needs a new $20,000 roof next year is NOT going to be as profitable as the one that got a new roof two years ago.  

If the property generates possitive cash flow after (1) mortgate, (2) property taxes, (3) vacancy's, (4) insurance, (5) repair costs, (6) water & gas bill, and (7) any other unforseen cost, then I would buy and hold.When I mention repair cost, I am talking major future repairs suchas, roof replacement, driveways etc.It is a good investment if you can generate at least $100 a month after all your fixed costs.Hope that answers your question.Melissa

Bought property for $36,000, previous sale $108,000, needed partial roof repair, clean and paint, rent $895, already had new gas furnace and central air conditioning, off street parking, fenced yard and deck.#2. 

Where will you get the money to pay for the inevitable broken water heater, special asessment, unit turnover, new roof, vacancies etc.I am also curious to know what a $40K condo looks like in Santa Fe.  

What happens 6 months after you close the place needs a roof and 6 months later, the air conditioner goes out.