New Kitchen: $9,800Total investment: $236,800Closing costs: $0 (went through his own company) 6 months of rental income at $2000/month = $12,000Taxes for 6 months: $2476 Insurance: $500Tenant paid all utilitiesTotal investment after 6 months: ($236800+$2976-$12000)= $227,776Refinance cost: $0 (own company)Refinance appraisal w/new kitchen and tenants having torn up carpet exposing hardwood floors: $259,00080% LTV = $207,200 loanTotal left in property after refinance: $20,5761.5 years of renting at $2000/month with PITI of $1426 = $574 on top of mortgage per month-expensesActual expenses: Vacancy: $0; Utilities: Tenant; Capex: $0; Expenses: $426.25 (oven igniter, lightbulbs, hvac servicing) Management: $0$574x18months= $10,332-426.25Total of own money left in house by time of option purchase: (20576-9905.75)=$10670.25Remaining mortgage after 18 months at time of lease option execution: $200839Sale Price to tenant: $270,000 done as a direct sale between my investor and his tenantNet proceeds to seller: $264,049.47 - $200,839 = 63210.47Profit of sale - total remaining initial funds = $63,210.47 - $10,670.25 = $52,540.222 Year profit on deal: $52,540.22 (taxed as a rental, not a flip) or $26,270.11/year. 

Hi Austin,Oh-dark 100--man goes out and gets into PU truck.Boot in the step up, slides in, fires it up (no diesel in the coldest of the cold places)....Inside the cab is Ice cold, the steering wheel cannot be touched with bare hands--coffee thermos by his side.Key in the ignition--ding ding ding...and Vroooom the large V8 comes to life!

I have been listening to the podcast library over the past couple of months and it's ignited my passion to really get moving on my real estate goals!  

Personally, I like electric for rentals, but in this case, I might stick with the gas and when I needed repairs on the existing stoves, replace them with electric ignition, gas ranges.

The only time I have to replace them is when an old one that has a pilot light that won't stay lit, I then get an auto ignition. 

Only repair has been to the electronic igniter which was cheap and easy top replace.

And whats worse, if you're renting to Section 8 tenants, you, the landlord, will be penalized for them not keeping the kitchen clean, not cleaning the bathroom (mildew), for having clothes near ignition sources, for putting holes in the walls.

(igniter, thermostat, ?). 

And have since moved to other companies, one of which treats people horribly.After finding a book on personal finance, my wife and I were ignited into getting out of all our debt.  

My concern is a while the used/auctioned car is parked in the garage, the risk of a spontaneous fire igniting in a car engine that may have been poorly maintained (ie. leaks etc.).