.🎩 The Buffett ConnectionWarren Buffett's investment philosophy aligns beautifully with the principles of income-producing real estate, particularly through his well-documented love of dividend-paying stocks.🎯 The Buffett Dividend Strategy Coca-Cola remains one of the best examples of Buffett's philosophy in action:1988-1989: $1.3 billion investmentHeld for 30+ yearsGrowing dividend income streamShows the power of buying quality assets and holding for cash flow💳 The American Express StoryBuffett began buying AMEX in 1964 during the "Salad Oil Scandal" crisisMade a larger investment in 1991Berkshire now owns about 20% of American ExpressThe investment has generated billions in dividend incomePerfectly demonstrates Buffett's principle of buying great companies during temporary troubles (just like smart real estate investors who buy in good areas during market dips!)

As you indicated yourself, it's mostly throwing away money because you have nothing left at the end of the lease.

Understand Auction Rules:Auctions typically require fast closings, often within 7-14 days, so confirm your financing aligns with this timeline.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Fannie Mae will allow you to transfer the deed to an LLC if you decide to try to go the conventional route, but the loan would still be in your names and you'll need to pay a title company a second time post-closing to do this  for you. 3) I can't speak for the area so no comment there4) If you're self managing, make sure you find vendors you can trust in the area since you won't be able to easily verify if an HVAC guy, plumber, etc. is trying to rip you off and tell you to buy something you don't actually need. 5) Make sure you have clear alignment of goals and a clear operating agreement that spells out what to do if those goals start to not align in the future since you'll be jointly obligated to these properties. 

Sounds like strategy call would make most sense to see what your goals are with REI and being an agent to determine if the organization I represent aligns with the direction you are looking to go. 

I sent her a message asking if she was home, she said no she left because she was waiting too long and had to get her kids ready for bed.

Any other investment ideas that align with my goals?

This october the tenant left without warning and house went vacant.

She did so and left a note with the person who showed her the house.