With $19K invested and a $71K purchase price, your cash-on-cash return should be strong if the rental income covers expenses and leaves room for profit.

On Page 134, he lists the following when analyzing a deal:Sales Price: $132,490.00Sales Expenses: $17,000.00Loan Balance: $55,004.72Total Invested Capital: $35,950.00Profit: $24,535.28I agree with his thought process here when he calculates net profit, but I'm trying to verify the net profit by adding up all the sources of income over the past five years in his example by doing the following:Appreciation over five years=$12,490 (see chart on Page 133).Cash flow ($297.73x12x5)=$17,863.80 over five years.Loan paydown: ($60,000-55,004.72)=$4,995.28 over five years.Sales Expenses are still $17,000.Doing the math, profit= $12,490+$17,863.80+$4,995.28-$17,000=$18,349.08There is a $6,186.20 difference from the net profit he calculates.My question is: Is this $6,186.20 difference due to the forced appreciation gained in the property from the rehab he does in this example?

$28,000 profit Lessons learned?

Also that will give me a lower payment which will allow me to have bigger profit from rent.

Reason, if the individual is willing to give me top dollar rent and thinks he can still make a profit, then it's a win/win.

I would suggest looking to bring in a partner and give them a percentage of equity for the $.Another option is to take profits from flips to grow or look to sell some of your rentals to grow as well.

If you want to hire to have this built out and are willing to either pay good money for it or agree to 10% profit of anything that comes through it, I'd be happy to help build it out.

Plus you still have to actually underwrite the entire deal (purchase, construction, carry, etc to develop accurate CF/profit).

If you wanted to, you could simply hire one of the many other PM's out there, rent the thing for $1,200+ and them sell it in 10-15 years for a healthy profit.

I did the 7 day trial with Renatus and it's very organized information but it's very pricey for their premium package.