@Tara L Morris Interesting reading. Refi will be limited to 75% of ARV or 108.75k. Taxes will not be $4 per month. Maybe $150 per month. Won't be able to get a loan without insurance. $40-$80 per month. Need a repair budget. $50 per month per unit minimum. Need a capex budget for major expenses, You might not use it for a few years but everything wears out. These are some of the major items. Roof, floors, hvac, appliances, hot water heater, exterior painting, bath and kitchen remodels, etc. Minimum of $100 per month and that might be low.
Thank you for the review. My error with the taxes, I believe it is that much now as a senior citizen discount. If I am renovating 100% of the house do I figure in that month for monthly upkeep?
@Tara L Morris repairs can happen at any time. A clogged toilet, a faucet that leaks, a garbage disposal gets stuck( i yank them out), etc. Thats why it is necessary to have a repair budget, plus on turnover it allows you to repaint between tenants. Also need a capex budget. Look at the commercial warranty on floors. Most are 10 years. Assume you have 1000 sf of flooring. My area it costs me $6 sf to replace. $6000/10year life span/12 months in a year=$50 per month to put in reserves. All the other items you replaced will have a lifespan. You might not have any capex expenses for a few years but you need to have reserves or be prepared to come out of pocket for unexpected capex items.