These units are 2 bedroom, 1 bath, non furnished with brand new everything inside (everything was redone and rebuilt this past summer before I bought it).

They typically have less brand recognition and smaller operationsAlso, FHA loans are typically harder to get from an inspection and appraisal standpoint.

I am new to the real estate arena and would like to network with some of the fine folks in Cincinnati.About me: brand new investor, educated myself on the nuts and bolts of wholesaling for a few months, and recently did the first mailing of a yellow letter drip campaign.

I read that to 50% depreciate items they have to be brand new...Anyways thanks!!!

:Brand new to BP poster, foreign, 'cute girl' avatar and draws attention to herself in the title post as being a 'girl that needs your help'?

Jus this year one of our condo projects got a brand new roof.

A few are at 3% but you are talking usually a franchisee of a well known brand guaranteeing the lease and not the corporate company that controls all 1,500 locations for example so you are taking on much more risk of default to land that extra 1% a year.Everything in real estate is a trade off.

However there is 2 very similar duplexes down the street renting for $650 /month, so there is the opportunity to raise rents.I contacted a good local lender and here are the numbers I was given:Sale Price / Rehab = $116,000 (including rehab funds of $6k)Loan Amount: $111,836Interest Rate: 4.75%APR: 5.813%Payment = $923.66Cash to close = $4,208.34 (downpayment of 3.5% on $16,000)Payment BreakdownP&I = $583.39Property Tax = $161.36Hazard Ins = $69.00PMI = $109.91Total Payment = $923.66The duplex has brand new windows throughout, new furnace in one side, new hot water heater in one side, recent roof repairs, and new front door on one side.

The 55% is a proven model over time even if you buy a brand new building that the costs average out around this number.A bank will usually give you loan use more loose numbers but the bank doesn't care about you making a profit each year just your ability to pay the mortgage and give them their interest.

Name brands explain part of the price difference, but not all of it, so something has to give: Material, tolerances, etc.