Of course, the $850 quoted could just as easily INCLUDE a total amount WITH the utilities figured in (even if the tenant pays them separately).

You would need an additional $10K or so of your own cash to cover the excess of the rehab over the loan amount ($3K), the points (about $4.5K), and your holding costs (taxes, insurance, utilities, etc.

Less expenses (you can use 50%, but it could be more or less depending on many factors such as owner paid utilities, etc.)Now that you have an estimated NOI, you can calculate if the ask price is too high, in line, or lucky you, under valued.NOTE: Whne I mention this standard formula, it is used only to gage if I should put more time in investigating the property.

I am currently having a survey carried out to establish new boundaries for the building...

Vacancies, economic vacancy (like the "two months free" you mention), advertising, utilities when vacant, evictions, tenant damage (brand new or not, tenants can still do damage), CPA, Lawyer, maintenance, property management, etc.

However, who is currently paying the utilities?

$1310.08 Utilities/taxes?

Find out what they are renting for and what utilities are included and set your rents with the current market.

The best way is to network with real investors at your real estate investors club (see the link on this site for a listing of clubs in your area), and/or call for rent ads and signs and talk to the landlords, who may be buyers for more properties, and establish a buyers list.

What is best way to use accounts to establish and build business credit?