The importance of lowering expenses and increasing efficiency to maximize property income.

I am subletting a property that I am planning on purchasing the set up where instead of any type of security deposit I am re-having the property which is necessary before I rent it out.I will have about $20,000 in expenses all before I purchased the property.

@Jason Dubon I use a percentage of the rental income to prepare for expenses.

In some areas, purchase prices and value add opportunities align well with BRRRR, while in others the margins might be tighter.NOI plaus a big role in success, esepically with MF, so increasing rents and reducing expenses are key.

2 are not cashflowing with the required expenses for vacancy at 10%, repairs at 10% and capital expenditures at 5%.

Yet, many investors overlook simple strategies that can significantly reduce their tax liability.

Are you able to reduce your expenses quickly and easily if needed?

Better to concentrate on decreasing expenses and saving for now. 

I would hesitate to say 1-2 years to rotate out but closer to 5 years, and ideally I'd try to get the downpayment higher to at least 10%.I understand your areas though-- they're expensive.

A small park in Alabama with septic will almost certainly run an expense ratio higher than 40%.