Set your limits

Fictional practice: Find out how much this investor can put in.

• $110,000 is ready for this deal. A separate $20,000 personal emergency fund stays out of it.
• First plan: $75,000 down payment + $8,000 closing costs + $12,000 repairs + $15,000 property reserve (cash kept for this property’s surprises).
• This investor wants at least $150 a month left over. That’s after running costs, the loan payment and savings for big replacements like a roof (a replacement reserve).

Ask the local tax office what taxes and charges you’d owe after buying. The seller’s current tax bill may not match yours.