The price points do make it hard to cash flow even with the lower interest rate subject tos. 

Hi Danielle, As a property manager, if you were my client, I would recommend that you incorporate a monthly flat rate utility fee into that tenants lease.

Rentals also build equity through tenant payments and appreciation, with profits taxed at lower long-term capital gains rates when sold.

It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income. 

If the floating rate debt starts costing too much and there is no capital to replace a rate cap, reserves run out.  

If you look at the MF mentor guru's they have one thing in mind when you do a deal with them  YOU ARE ALREADY accredited and have 100k or more to invest in their deals and the money to buy their course. the beginner fix and flip gurus and wholesale gurus like to take those that dont know much about the business and teach them how to do it and of course we know the success rate for those with no experience taking those courses is minute but the folks feel good being a part of the big events.. 

Since seller-paid fees usually cover their services, you get local expertise without additional expenses.Final ThoughtsLive where you like, but invest where you can achieve financial freedom.Out-of-state investing has proved to present excellent opportunities.

Too bad you can't buy something owner-occupied, put 5% down with the best interest rate, live in it for 12 months (and fix it up), rent it out and repeat the cycle.Here's some other info you might find useful:----------------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

(Anything that isn’t your primwry first is only tax free on a pro-rated basis.)I don’t know how you could swing it but…If they gifted you the kand they would avoid their capital gains tax.

More likely, he is hoping to use the extra time to collect more rents and thus more fees to generate the funds to pay his owner clients:(