Using 25% or $84k as an assumed down payment ($335k x 25% = $84k) and $24.5k of appreciation per year ($825k current value - $335k purchase price = $490k appreciation / 20 years = $24.5k per year appreciation), you have an annual return of 29% on appreciation alone ($24.5k appreciation / $84k down payment = 29%). 

If he is producing double digit cash on cash, IRR, or annual ROI on a consistent basis kudos.

As its been posted, apparently CA will charge you $800 annually for each LLC, no matter where it is..The next is tax time... 

Actually, @Richard Licon, the American Association of Private Lenders does have a certification program they hold at their annual convention.

This is certainly text book and absolutely the proper way to analyze a deal.Im not sure what he owes on the home but based on the payment and the year it was bought and the fact that its 20 min from Austin im just going to throw out 500K for conversations sake.500K compounding annually at 3% for 5 years comes out to approx $578,000, and you have the loan paydown aspect as well obviously. 

I think I paid $30 bucks for it and never updated quicken to a paid subscription as I don't need any of those annual fee features. 

I am considering paying off the mortgage lump sum, which would avoid around $135K in interest payments and generate an additional $1,400 positive cash flow ($28.8K annually).

You can have a couple of 30-day stays provided that your annual average is kept at 7 or less.What you cannot do is put someone in for a month and pretend that it was four consecutive 7-day stays.

I don't do much work down in Southern Colorado...but have heard great things about Wolf Creek.

And can expect somewhere around a 10% annual return.