You can frequently get the same program from a broker at a lower cost than what the branch offers.

They listed the home for sale and it has been on the market for the past 9 months, each month lowering the asking price by about $5K.

Please check my math.Taxes =2% of appraised valueInsurance on the safe side is 2% of replacement costTypical 3/2/garage in Broward and Palm Beach counties in a working class neighborhood will safely fetch $1500 now, maybe lower soon.

Property Cost $200,000.00 Repairs Needed $50,000.00 Number Of Units 10 AVG Rent Per Unit $475.00 Gross Schedule Income $4,750.00 Vacancy Allowance 10% $475.00 Gross Operating Income $4,275.00 Less Operating Expenses Accounting $25.00 0.58% Advertising 0.00% Insurance $125.00 2.92% Lawn / Snow $- 0.00% Repairs $85.50 2.00% **Since i guess high for repairs, i lowered this down to 2% Monthly Taxes $458.33 10.72% *** Renter pays Utilities Electric $- 0.00% Gas $- 0.00% Fuel Oil $- 0.00% Water / waste $- 0.00% Total Operating Expense $693.83 16.23% Net Operating Income $- 0.00% Property Cost With Repairs $250,000.00 25% Down $62,500.00 Additional Cash Down $- Remaining Balance $187,500.00 Gross Operating Income $4,275.00 Monthly Mortgage $1,875.00 Total Operating Expense $693.83 Monthly Profit $1,706.17 36% profit My formula always shoots higher on the cost to protect me.

What is accounting for the lower capitalization rates?

However, he revealed his is among a group that includes academics, economists, transportation officials, and architects currently writing a book entitled "Lower Manhattan 2020."

They lowered the asking price significantly to gain interest (after trying to sell by auction).

Not only can they identify problems/necessary repairs, but the report can then be used as a negotiating tool with the seller to either have all the items fixed, or lower the price.

So you must be realistic about expenses and be sure you know where the money is coming from to pay those expenses.My suggestion, if you are certain that the house is a good one to own, is that you make your first offer to the bank lower.

If they can operate the business better than my property management company and have lower vacancies and repair costs, they may make even more than $110K profit - good luck to them. :)I'm not looking at REITs etc because 1) I like to have more control over my investments, 2) I can't leverage to the same degree, and 3) they generally have much lower ROIs.If anybody understands what I'm describing and knows if I'm using the appropriate terminology and can provide any advice, I'd be most grateful.