if you intend to flip, HELOC be fine. but if you intend to keep

if you intend to flip, HELOC be fine. but if you intend to keep, you should refi to 30 year fixed.

the 1% rule is net rent / purchase price, net rent should be consider rent less HOA.

so in this deal, (990-194) / 100000 = .79%, you are walking on a thin line,

Total Gross Income $990.00 $11,880.00

Vacancy 10%
Vacancy Rate @ Expected @10% --> $1,188.00

Operating Expenses
Fixed
Property taxes $1,875.00
HOA $2,318.00

Variable
Property management
Maintenance $960.00
Legal Fees $100.00
Accounting fees $-
Advertising $100.00
Administrative expenses $-
Extermination
Landscaping
Trash Removal
Pool/ Recreational area maintenance
Utilities $200.00
- Sewer
- Gas (propane, oil, natural)
- Water
- Phone
- Cable
- Electric

Total Expenses $- $6,741.10

Net Operating Income $5,138.90

Mortgage
- First Mortgage 80% @
- Second Mortgage $4,000.00

Profit or Lost $1,138.90

Cap Rate 5.14%