He put ads in the local paper with the rental ads and has had great success.

Well the pipes became blocked.It appears she was using the sinkerator as a document shredder & decided to shred a century of papers & old cardboard she had stored in the basement over the years.

You could get involved with other forms of paper such as seconds, non-performing notes, and tax liens.

Scott who's analysis spreadsheet mine is based off of.The numbers used are entirely based off the pro forma:Asking Price (not offer price): $233,000Down Payment: $58,250 (25%)Improvments: $6,000Closing Costs: $4,500Total Cash Invested: $68,750Total Rent: $3,525Gross Income (less vacancies): $3,232Expenses: $17,804 (50.39%)(includes 11% PM, maintenance at 10% of gross income)NOI $20,985Debt Service: $10,625 ($175,750 mortgage at 4.5% for 30 years)Cash Flow (with PM): $10,360Cash Flow (without PM): $14,627Cash on Cash (with PM): 15.07%.Cash on Cash (without PM): 25.59%Cap Rate (with PM): 9.01%Cap Rate (without PM): 10.84%I'd like to do the management on my first few properties to learn, however my minimum criteria has to work with a PM as I will eventually get one.My conclusion is that on paper this property is quite a good one considering its cash flow, cash on cash, and cap rate - especially when considering this is based off the asking price.I'd love to hear your thoughts.Thank you.Will

I put a sign infront of it and got some free traffic from the neighbor's ad in the paper.

Place is a 3/1.5 built in the early 1900's. has updated funace, hot water heater, 100amp panel (looks like a small bit of knob and tube was left in), new carpet downstair.Roof needs to be looked at since their was a leak (seller said it was fixed but I don't think I trust his maintnace guys), some small issues with brickwork I will be getting a estimate on later in the week. figure about $1500 for roof work and flashing fix and another $1500 for the brick work (mostly some re pointing a small area and a couple little things)Now the place needs:New kitchen(small)- tile floor (have the 18'x18' travertine that IO got for a steal), cabinets, countertop, appliances, lights ($6K)New half bath-tile floor, vanity, toilet, lights ($1500)Back stairs re done ($1K~1500)Open stairs to attic and turn in to hatchway and use floor space for closets ($1K~1500)Sub floor repair upstairs (stiffen a bit and fix 1 hole) ($750) Carpet Upstairs (700 sqft) ($1K)Upstairs Bathroom- Tile floor, Tile tub srround, build in tub since it is a corner tub now, toilet, sink, ect ($3K)Paint and some drywall/plaster repair ($4K)Fix 3'x8' second floor deck off Master BR-railing and some clean up ($500)Fence backyard and some landscaping ($3K)Misc $2Kcall it about $27K in rehab to make it nice and well in the top of the comps.I could also do less but was looking at making it shine and moving it quick.I figure I have to get into it at low 60's, Owner owns free and clear.

Of course that goes in any market but reinforces the need to buy right.I get a paper called the Landlord Times that publishes stats on major cities.

The further in you get the more you're at risk of inflation and all you really have is paper.

Would you believe that on the day the closing papers were being sent to me, I received an offer.

They all refused to see why I keep certain properties, liquidate others and stay heavily invested in paper (for cash flow).