Contrary to popular belief, this is not set because I believe it will give me a higher return.

But I do understand the OP points and I think that folks just really dont understand the work and risk involved in ANY rental property short of NNN leases with super strong companies I personally have one of those returns are 5% COC but all the headaches are gone.. you get what you pay for..

. - Your return on equity with this house is terrible. 

He was initially terrified of buying a place with a pool.. thought it would scare off insurers and sink his returns.

The investment will be 12.5% cash on cash and an overall return on the money invested will be 48% over 2 years.

Scott, I have no issue with what is being claimed as a return by Brian.

There are also some exceptions to convince the underwriters to use leases if there were major repairs for that house/unit proving that the schedule E numbers are not showing the full potential return, then you would be able to use the leases as an exception. 

Using a loan lets you spread your money across more deals, scale faster, and potentially see bigger returns.

48,000/300,000 = 16% ROI60,000/380,000 - 15.7% ROIAppreciation:Renovated single family = 33% appreciation potentialConvert to Quad = 31.58%So in both calculations your percentage return from gross revenue AND appreciation is higher renovating the single family.

It will only cash flow about $150/door/month, but I tell you this to point out that cash-on-cash returns are nice to analyze, but I am getting to the point that something that cant be an infinite cash-on-cash return at some point in the near future just doesnt sound that appealing.