Try a different property

Fictional practice: Use the same steps on a new case.

• Willow Duplex: a different made-up property. All numbers are for practice, not checked market data.
• Paying all cash: $230,000 price + $8,000 closing costs + $12,000 repairs = $250,000 invested. Another $20,000 stays in savings for the property. In total, $270,000 is available.
• Expected total rent is $2,500 a month. Set aside 5% for empty months and unpaid rent. Running costs of $1,000 a month cover tax, insurance, management and upkeep. Set aside another $150 a month for big replacements. There’s no loan payment, and income tax isn’t counted.
• Nobody has checked the leases, whether renting is allowed, the condition or the title. If you used a loan instead, it would need its own terms, approval and new math.

Check current local rental laws, rules and steps, and your deal papers. Confirm the property’s real leases, allowed use, title, insurance and condition with the right professionals.