That's $28,200 a month for a cash on cash return of 4.7%.Sorry, this is a bad deal (as far as cash flow) no matter how you slice it.Now, there may be some other reason to buy these properties, such as future appreciation or splitting them up and selling them like condos.

But take care not to slice the onion too thin.

They will likely want a generous slice of the pie, but they will also be able to show you how they've earned it.

There are a lot of ways to slice and dice this deal so that the numbers stack up.

I believe the idea of slicing and dicing these came into vogue about this time.

Most lenders do not do that much investor business so ignoring a slice of the demand (from the seasoning) makes almost no difference to their income.Risk vs.

No matter how you slice it though, this is a great deal.As to anything special to look for, no, not really.

Perhaps a slice up front (maybe a quarter or third), and you will have to complete work and have it inspected before you will get the additional increments.  

@Edward Burns You reminded me of another slice of money... reserves.Your bank will ask that you have reserves of at least 3, and probably 6, months of cash that could be used to pay for BOTH your home and your investment property.

But do realize you're "buying a job" if you do the math like that.The trouble with trying to identify every possible expense, line by line, and putting a number on those is that its easy to slice the tomato too thin.