What would be a good return on a passive investment?

[Stu Stanton]

I have been throwing this around for a while now and just don't know the answer.

If you could purchase a home, even at 100% financing, and it would give you positive cash flow, money up front, money on the back end, and you did not have to do anything. What would be a good return?

Just so you know, I would do all the grunt work and you would just collect you share. This would be a short term investment averaging three years, then the resident will purchase the property.

I have not factored closing costs into the questions below, simply, becuase they could be really radically different. My favorite lender charges about $1000, a mortgage broker will charge a lot more.

If you could pick an 200K property at 100% financing and get at a minimum 10,000 over 3 years, would it be worth it to you?

If you could pick up the 200K property with 5% down (10000) and get back at a minimum 13,000 over 3 years, would it be worth it to you?

And not have to doing anything but sign papers and pay the closing cost. You will get some cash from the upfront money the end buyer puts ups and the may cover some if not all the closing costs.

Also, this is an equity share set up, so, you would get a share of future appreciation, if any.

I have a couple of small projects I would like to offer in the Partner section, but, want to know if this is a decent return for just using some of your cash and your credit?

Thanks,
Stu