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Updated over 7 years ago on . Most recent reply
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Is this calculation correct?
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@Byran Parson this is not a good deal. I will assume you are new, so I will try not to sound like a jerk. Don't Answer, but just ask yourself a few questions.
Do you think it is a good idea to invest $12,500 in hopes of getting $60 per month?
Will it actually rent for $735?
What if the renter doesn't pay? Can you afford to carry the cost of the property if vacant?
$60 per month would make you $600 in 10 months. Then the hot water heater goes out and it costs $700 to replace.
Please be aware that even if you made $100 per month of cash flow, you will never make any money from one house using this method. $100 per door works if you have 100 units and maybe even 50 units, but never just one. You need more cash flow Sir.