., the appraisal for 5+ is at least $2k-$3k) and the financing structure by lenders because Fannie/Freddie don't generally buy loans for commercial properties.So, for you personally, the biggest driver for the type of your next property is probably going to be the amount of a down payment/equity you can put in the property.

So you are talking about a loan of $200K.

You're absolutely right—positive cash flow from rentals can vary significantly depending on factors like property costs, financing, and the ever changing market conditions.For real estate the challenge isn't just accumulating properties but creating a framework that builds net worth more strategically and sustainably.Cash Flow can be generated in many ways, my intention was to better understand the investor mindset and their approach, if they wanted to share.Based on your example, if using conservative calculations at $100K/door, you would pay $20M for access to $40K/month. 

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

Is this using a 20% down, conventional or DSCR loan, although I would think a first time investor would use a conventional loan.

Do you use traditional financing or do you us DSCR loans?

We generally advise our clients to go ahead and pay the recapture rates if death is the alternative.The good news about recapture - the deductions are a deferred tax liability to you, and an interest free loan from the government.

Possibly break loan covenants and can't cure default, lender takes back property.  

Hello, my name is Julian. I am a licensed realtor based in Atlanta, Georgia, and I am currently working on obtaining my mortgage origination license. I am 14 hours into the 20-hour online course offered by "RealEstate...

There was also a loan grant available from the state of NH for first time home buyers for 3% down payment assistance.