I don't think the question was about the investment as much as the analysis process.When I run a projection like this, I like to make it kind of a "what to expect in the first year" scenario.I also include projected tax benefits, equity buildup (amount of principle paid) and somtime include some estimation of appreciation.So, using your numbers (and a couple of my own assumptions), this is what I get:Your Assumptions:Purchase Price $250,000.00Down Payment $50,000.00Loan Term 30 yearsLoan Rate 7.80%Yearly Income $33,495.00Yearly Expenses $11,412.00My assumptions:Property Appreciation3.00%Buyer's Tax Bracket30.00%Depreciation- Land 20.00% Building 65.00% over 27.5 years Personal Property 15.00% over 5 years1st Year Benefits:Cash Flow$33,495.00Income-$11,412.00Expenses=$22,083.00Net Operating Income $1,439.74Monthly Payment*12Months=$17,276.89Debt Service $22,083.00Net Operating Income-$17,276.89Debt Service=$4,806.11Cash FlowTax Shelter$22,083.00Net Operating Income-$5,909.09Building Depreciation-$7,500.00Personal Property Depreciation-$15,538.73Interest Paid$-6,864.82Taxable Income / Loss $-6,864.82Taxable Income / Loss*30.00%Tax Bracket $2,059.45Total Tax Effect (You save this much in the first year on your taxes...)EquityIn the first year's payemts, $1,738.16 of principle will be paid.AppreciationA property worth $250,000.00 whose value increases by 3.00% per yer will increase in value by $7,500.00 in the first year.Total BenefitCash Flow + Shelter + Equity Increase + Appreciation = $16,103.7132.21% return on down paymentIf you don't like to include Appreciation, then you getCash Flow + Shelter + Equity Increase = $8,603.7117.21% return on down payment

Do you build up your profits and save for another investment or do you pay down your debt on your loans that you have ?

If you you've done it before then I'm more confident in knowing what my potential exit strategies are and what I can do to build up my portfolio.

Does anyone know how I can find lists of evictions in King & Pierce counties?

Is this one deal for $1 million or are looking for smaller deals that will build up to $1 million?

We bought a duplex for rental purposes with about a $1,000 out of pocket, and then we started doing rehabs (fix up and resell) to build up capital to fund more rentals.

But some where down the road I'm going to diversify and get into the rental aspect of rei once I build up additional cash reserves.

This deduction provides a tax shelter that can shield positive cash flow, as well as the equity buildup occurring through principal reduction on the loan, from taxation.

My advice, go for the smaller projects and avoid the "home run" deals and build up some good relations with the various trades.

Do you build up your profits and save for another investment or do you pay down your debt on your loans that you have ?