Need to include the misc such as bookkeeping, asset protection, accountant/tax man, utilities from property failure such as slab leak or other water leak, etc.good luck Hello Dan, I hope all is well!

It’s important as you start and make decisions to also understand how passive vs. non-passive income interacts with your current income streams.Many investors focus on passive income, which is great and offers some tax perks, but the larger benefits often come when you turn rentals into non-passive income through active, material participation, this is why many high W-2 earners invest in real estate.

At $1400/month PITI plus utilities, you could be $3000-4000 in the hole if it takes 60-90 days to get both rented.

I havent flipped anything in a while, but assuming that I eventually get into another flip, my DD process now includes asking for copies of the most recent utilities bills, as well as calling the providers and getting what info I can.Risk is just a part of the game.

Well you've decided to buy a multi with a shared utility.

My tax advisor referred me to them, and I also utilized cost segregation on the properties, which significantly reduced my tax bills.

If the investor is utilizing MLS or its commercial equivalent to look for deals, then the investor whose successful will utilize offers to “probe”; that is test for sellers who are amenable to sell at investor terms.  

Speaking purely from my experience as both a developer and a general contractor, the most common causes I see are funding issues after something was overlooked in underwriting, investors walking because capital wasn’t fully locked in, or projects getting delayed or derailed in permitting, utilities, or zoning.

That is in effect what you are doing and f you do not include PM fees in your underwriting.Your maintenance/cap ex fees is likely too low by a factor of 2.You are missing the misc charges like asset protection, bookkeeping/accounting/tax man, utilities due to property issues such as by a slab leak, legal/evictions, etc.The 50% rule is aggressive at this rent point and projects $82/month of cash flow.  

However, after all the additional expenses (Utilities, internet, pest control, consumables, furniture, increase wear and tear), net profit wise is about 50% more than long term rental.