As Nathan said, how long it takes to get them out depends if they are month to month or on an annual lease. 

Hi all, I have a tenant that signed a 18 months lease and kept delaying on their rent payment in the first 6 months. We have a clause in the original contract saying that if they cannot get caught up on payment by the...

However, I'm not sure which route is best.Option 1: Equity PartnershipIf he provides the full $230K, I cover closing costs and manage the property, and we split the cash flow 50:50, that would give us each $960 per month, $11,516 annually.

Foreclosure Completions Increase Annually by 64 Percent in November 2022" and that "foreclosure activity remains up 57% from last year".

For a $300,000 property, this could be $6,000 to $15,000.Mortgage on Rental Property:Loan Amount: $240,000 (assuming 80% financed at 4% interest over 30 years).Monthly Payment: Approximately $1,145.Other Expenses:Property Taxes: Estimated at 1.5% of property value annually ($4,500).Insurance: Estimated at $1,500 annually.Maintenance: Estimated at 1% of property value annually ($3,000).Property Management Fees: Assuming 10% of monthly rental income ($2,400 annually if rent is $2,000 per month).Vacancy and Turnover Costs: Estimated at 5% of annual rental income ($1,200).Total Initial Investment and Annual Operating ExpensesInitial Investment:Total Borrowed from Equity: $150,000Down Payment for Rental Property: $60,000Closing Costs for Rental Property: $10,500 (average)Total Initial Cash Outlay: $70,500 (initial investment from equity) + $10,500 (closing costs)Annual Operating Expenses:Property Taxes: $4,500Insurance: $1,500Maintenance: $3,000Property Management Fees: $2,400Vacancy and Turnover Costs: $1,200Total Operating Expenses: $12,600 annuallyExpected ReturnRental Income:Assuming $2,000 per month, annual rental income = $24,000.Net Operating Income (NOI):Annual Rental Income: $24,000Minus Annual Operating Expenses: $12,600NOI: $11,400Debt Service:Mortgage Payment on Rental Property: $1,145 per month, $13,740 annually.Total Debt Service: $13,740 (rental property) + $8,592 (equity loan) = $22,332 annually.Net Cash Flow:NOI: $11,400Minus Debt Service: $22,332Net Cash Flow: -$10,932 annually (negative cash flow initially due to high debt service).Cash-on-Cash ReturnInitial Cash Investment: $70,500Net Cash Flow (first year): -$10,932Cash-on-Cash Return: Not applicable initially due to negative cash flow.Long-Term Appreciation and AdjustmentsProperty Appreciation:Assuming a 3% annual appreciation, the property value could increase by $9,000 annually.Rent Increases:Assuming a 2% annual rent increase, rental income will rise, improving cash flow over time.

The building generates an annual gross income of $120,000.

If you figure 10% annual returns, that means you need $2mm equity invested to earn $200k/yr.  

Instead, if I have 12-month CDs yielding 4.5% and I receive from a financial institution a personal loan collateralized by the CDs, with 4.5%+2% APR, and I invest in a low risk asset yielding 8%, I am receiving 6% annualized yield instead of 4.5%. 

Often the inspections are very picky and they happen every 12 months so although section 8 tenants normally stay longer then market tenants it sometimes feels like a built in vacancy of 1 month every time they do the annual inspection depending on how much your contractor charges. 

I'm considering a commercial property (16 - 1Bed1Ba units) with a current annual rent roll of $170K fully occupied.