Step 3: Don't include utilities.

During the Master Lease term, I will have the right to collect all rents, the responsibility to maintain the property and pay all expenses and mortgage, as well as will have ownership and right to access and utilize the equity in the property as I see fit.

However, I have heard that in other cities they do not utilize MLS as much for rentals.  

I secured it up to $1000.00 so I could easily pay for things like my gas groceries and phone while only utilizing 20-30% of my balance, which I have heard is the key to establishing credit.

I cannot recommend them based on their work but I did extensive research before I had 3 of the vendors do quotes.  

I would like some thoughts around successful transition plans some of you have tried to increase rent, move some tenants out and transition utilities back to all tenants (water is currently paid by the owner). 

Looking for some insight.Background:Excellent locationDuplex- $1,500 per month gross3900 sq ft 8 bedroom home 3 bathCurrent negotiation at $83,000 (closing costs included) Down Payment $2,500Tenants pay all utilities$3,700 annual taxes$360 Insurance$1,000 start up expensesNo management feesLoan 4% for 30 years

You need to know the rent rates, vacancy rates, cap rates, utility costs etc.... if your market sneezes you should know.  

Quick and dirty analysisARV - 58000Purchase price: 14,900Closing; $1000Holding cost (utilities): $400Taxes (200)Rehab; 30,000 Selling costs: (6%) 3,460Closing Asst. (1%) 580Potential Profit = $7460Rough estimate - you have to be very strict on your rehab cost - a 5k overrun will potentially kill this deal.

They pay for themselves in about a 1.5 yrs all the rest of those utility charges are yours to keep going forward.