Statistics show that tenants use up to 40% more water when they do not pay for it.Your options are usually to:1.Have the total rent include water,sewer,and trash.2.Sub meter out the units from the water company if they allow it3.Prorate the amount of water usage for the building an bill each tenant.4.Have a company bill them instead of you.5.Have a private company install meters which is cheaper and they bill the tenant for what they use.This avenue you are still responsible to pay the water to the city/county even if you bill the tenant and they do not pay.On lower income housing I see about 60 to 65% pay their water you bill them for every month and the rest you have to chase for the money.You have to pay the water company regardless.The other factor is tenants will let friends was cars with the outside spigot,take showers,do their laundry,etc. and the tenants will also usually not report leaks or drippy faucets as they do not pay for the water.Another thing to look out for is what does the city/county charge for water and sewer rates.If you research a county you might find they have upped the water rates by 50% in the last 6 years.So one county using 1,000 gallons costs you 100 and in another county it costs you 56.You have to really look at how old the water and sewer system is for the city/county etc. and look at all the costs.I can tell you water is the talk of the town with buyers of multifamily.It can just crush your bottom line.

The cash you've put into your "investment" very likely totals over the $325 its worth.

The good thing about housing is that it is expensive and your total dollars of business conducted can be huge in a few years.A 501 (C) 3 is a corporation, you will need a minimum of 3 board members, always keep it at an odd amount to, 3,5,7,9, I suggest not more than 9 but 5 is more manageable.

Hi James,Fo me I was able to have 4 total properties with 20% and when I bought my 5th and 6th I need 25% and actually 30% for my last deal.But there is some debate if you have 4 investments and you buy a primary making it your 5th you may be able to get away with 20% b/c I believe they are looking at investment properties.

Take 75% of rents-PITI and add to your personal gross income.If you want a conventional conforming loan (best interest etc) use 28% of your gross income for PITI on your new home.There are more aggressive formulas but if want 3.875% 30yr then the above will get you there, assuming good credit and high quality property, and not exceeding 36% gross total personal debt including PITI for home.

I had all the properties appraised upon mom's passing two years ago and these three totaled $1,300,000 in value.

Totally agree with Mike there - getting an excellent team in place will save you huge amounts of time and effort, which you can then re-invest in home duties or more work, depending on your personal situation - choosing good teams is a key skill here in my view.

Now if you approached me for a loan and asked for 67k and would pay me 13k in interest, with first position mortgage, and the total hold time was reasonable.

For what it's worth, I've made a choice to keep my S8 revenue under 20% of my total revenue.

Do you have a trusted association, one who's totally unrelated to this transaction, who can go check out this area and the property?