To succeed, focus on properties in high-demand neighborhoods like Pecan Grove or Aliana, and ensure your cash flow analysis accounts for high property taxes, potential HOA restrictions, and flood insurance costs.

Pay him cash.

Purchase price: $189,000 Cash invested: $40,000 Mid-term rental property in a college town.

Many judges would feel you got paid even if no cash was sent to you.I could see this potentially working on a higher-end property that it in excellent condition with a Grade A tenant.  

Usually draw fees are very minimal though and if you plan them right, it can be a great way to replenish your cash or pay down debt from rehab.

As far as its value, I'd agree with @Ian McDonald that it is something you could build yourself with the right amount of excel expertise and plenty of time.

I would find a property that can provide you both.I used to aim for 8% cash on cash return + 4% appreciationGiven where the market is now, it is likely hard to find 8% cash-on cash and a 4% appreciation.I think 4% cash-on cash and 4% appreciation is do-able.

Purchase price: $98,500 Cash invested: $15,000 owner financed on duplex, bought from a friend of the family. hopefully many more to comeHey @Jeffrey Eschbach, welcome to the BP Forum!

Build up your cash as you build your knowledge and network5.

Purchase price: $516,000 Cash invested: $600,000 Converted mixed-use 3 residential and large commercial space into 5 residential units and one mixed-use Building.