Had some crazy person recently ask me if she could squat on a property that was vacant and over encumbered.

Before I took out the money I made up my mind that I'd try hard to find suitable cash flowing properties, but if my decisions went down the toilet, I'd sell the  rental to cover the loss. 

I am selling it for $25K and after the work is completedthe numbers will look like this:Two hot water tanks (1 for each unit) - $800 x 2 = $1,600One new Furnace - $1,200New electrical - $1,100Two new bath tubs (1 for each unit) - $1,200 x 2 = $2,400Two new toilets (1 for each unit) - $500 x 2 = $1,000Two new sinks (1 for each unit) $350 x 2 = $700Two new stoves (1 for each unit) $500 x 2 = $1,000Two new refrigerators (1 for each unit) $600 x 2 = $1,200New carpet for each unit - $3,000 x 2 = $6,000New paint for each unit - $2,000 x 2 = $4,000Tile for kitchen floor each unit - $500 x 2 = $1,000Total Estimated rehab costs - $22,200Purchase and rehab costs - $44,600Estimated after rehab value - $90K Purchase and rehab equity - $45,600Purchase price equity - $68,000Gross monthly rental income each unit - $550/$550 = $1100Estimated gross annual income - $1,100 x 12mos = $13,200/yrGross annual return - $13,200/44,600 = 29% returnWater/Sewer - $150/mo.Taxes and insurance - $150/mo.Property Management - $110/moTotal Expenses - $410/moNet monthly income - $690Net Annual Income - $690 x 12mos = $8,280/yrNet Annual return - $8,280/44,600 = 18.5% returnEstimated time for completion – 6 weeks (45 days)

Its a lot cheaper to change the guts in the toilet tank, replace faucets, corroded valves, and angle stops than to pay a handyman to go out the property to fix leaks or running toilets.

Our housekeeper will provide a few rolls of toilet paper, garbage bags, paper towels, tissues and coffee filters, but beyond that it's up to the guests to supply their own toiletries.  

When I sent my property management group to look at the meter, the tenant told them that the toilets have been running non-stop.

Learning lesson on that one so far was to make sure to tighten the toilet after laying tile, my 6-yr old son went to use it and it poured water on the room below.  

He always is concerned with vindictive behavior like pouring concrete down the toilets, stealing appliances etc.

Actually has a flushing toilet and washer dryer.

Make sure the eviction is for "John Smith and all other occupants"  lest you get John out and his associate squats and need to be evicted separately.