Apartments also tend to be more of a pure real estate play while hotels and senior living facilities are less about the real estate and more about the service and operations.In general, apartments tend to be less risky and investors can accept a lower nominal return on an apartment building while still achieving the same risk adjusted return, with all else being equal.3.

If you change that to a 30 year mortgage you'll free up $200/month in cash flow, which is probably the difference between this being a nominally profitable deal and one that's going to have you working a second job.

She puts up the down payment of $229,000 and you pay $1,145 per month on that.Using the very conservative 50% rule, you take a nominal management fee for doing the work, and split all the cash flow 50/50 but you have to pay the 6% regardless.

While you aren't able to buy or sell for others under this structure, you are responsible for only a transaction fee of $299, and a nominal $250 fee for our time in dealing with your transaction.

The tricky part is getting a tenant to sign a lease and most times the listing broker, leasing office or Landlord will require that you attend all showings which means  you are busting your butt, showing the prospective tenant lots of apartments- all for a nominal amount. 

.* Nominal fee, think of it as discount points to get the killer VA rate without being a veteran. * Tougher to get through if your income/credit/asset situation is wonky, because you're trying to qualify for a mortgage by going through a glorified debt collections agency call center type setup (what is mortgage loan servicing, but that?)

And if I am correct you are only getting taxed at a passive income rate on interest owed when lending which would be nominal.

There are people that will tell you not to worry about cash flow, that appreciation is really what you are after, but so long as you have any kind of expenses beyond nominal on a property you want something that brings in plenty of cash.

NoticesAny notice or demand given by me under this contract or required by law may be given in writing, can be signed by any of my officers, and can be delivered personally or by email to the address you have nominated for delivery of notices, or if no such address has been nominated by you, your email address as last known to me.

I second the nomination for Gallinelli's book.