I added 25% of rent for management, vacancy, and repairs to your expenses.

This all assumes it needs no repairs at all.

This woman kept a small dog that relieved itself on the carpet & the hardwood oak floors ..... here is what my guy had to do to repair it ..... the $300 non-deductible pet deposit didn't quite cover it !!!

You would just haveto start all over with actual permits, thus boosting the appreciation value, or After repair value (ARV).

Let the properties season and re-fi into a traditional loan at which point repairs will have been made4.

And my dad and I would be doing a majority of the repairs at first.All advice is greatly appreciated.

Does the police department have any liability to pay for repairs.

Cash flow:$1356Cap rate: 0.3These numbers are based on $10,000 down payment, and a mortgage for the other $20,000 @ 6%.This makes the mortgage (with taxes/insurance) $412In addition to the $412 I've added a 10% management fee($75) and a 20% vacancy/repairs allowance ($150)The total is $637, leaving me $113 a month positive cash flow$113 is not much, but I don't NEED the income now, just don't want to get myself in trouble.

It helps to understand who your real targets are when we say "absentee owners" - it might help to think of them as "TIRED LANDLORDS", "TWO MORTGAGES", or "INHERITED PROPERTY" (often vacant and in need of repair).

Also another question, how does the typical 70%ARV-Repairs max purchase price do in Miami, is it even possible?