Baltimore investors:I recently stumbled on this initiative and found it to be very interesting.

Like I said, this would be my first REI and I really don't want to make a big mistake on a deal, but based on the numbers I've come up with, this property would cash flow about $500 initially while the loans are being paid back, but should generate in the area of $1800 once the loans have been repaid.At this point, I would be willing to take on any positive income, but I'm sure there are factors that play into this that I know nothing about.

Here are the numbers for the property:OverviewMonthly Income: $900.00Monthly Expenses: $961.09Monthly Cash Flow: -$61.09Pro Forma Cap Rate: 3.54% NOI: $2,016.00Total Cash Needed: $16,225.00Cash on Cash ROI: -4.52% Purchase Cap Rate: 3.54%Property Information Purchase Price: $56,900.00 Purchase Closing Costs: $2,000.00 Estimated Repair Costs: $0.00 Total Cost of Project: $58,900.00 After Repair Value $56,900.00Down Payment: $14,225.00 Loan Amount: $42,675.00 Loan Points: $0.00 Loan Fees: $0.00 Amortized Over: 30 years Loan Interest Rate: 5.000% Monthly P&I: $229.09ExpensesVacancy $54.00 (6%) Repairs $90.00 (10%) CapEx $198.00 (22%) Insurance $100.00 (11%) Management $90.00 (10%) P&I $229.09 (25%) Property Taxes $200.00 (22%) Total $961.09 (107%)Financial Projections Total Initial Equity: $14,225.00 Gross Rent Multiplier: 5.27 Income-Expense Ratio (2% Rule): 1.53% 50% Rule Cash Flow Estimates Total Monthly Income: $900.00 x50% for Expenses: $450.00 Monthly Payment/Interest Payment: $229.09 Total Monthly Cashflow using 50% Rule: $220.91

This cost should be used in the beginning as part of your initial capital.

Tenant calls initially, and I tell them to download the lease from the website, review it, ask any questions.

Typically will lend up to 80%, rate around 5%, 20 year term, resets after initial 5.This has been my experience.

I have a property with a very low initial basis compared to what it will  sell  for. 

My PM checks credit, verifies income and employment, and checks previous landlord references.

If she does not work with you, and denies access, then you will need to look into initiating eviction proceedings, for breach of the lease.

If the property is turnkey i.e. fully rehebbed with all major items like roof, plumbimg, electrical and mechanicals etc. updated you may need very little cash reserves at least initially for a few yrs so you mighe be ok.Having said that I would recommed having some cash as reserves or have way to pay for things in case if something comes up with the rental or in your personal life for that matter.