Insurance is expensive, there is a lot of extra maintenance like painting or electric in common areas that don't apply as much with smaller units. 

This unit was gutted down to the studs so there is all new electrical, plumbing, windows, sheetrock and finishes.

So the cash flow as a percentage of investment was higher than virtually all markets that had far higher initial cash flow.

They also tend to offer good cash flow relative to their cost, especially in areas with high demand for affordable housing.

It definitely seems like you could make a killing there, but it's going to take much more up front cash then LTRs.

I will have POA and will conduct a 80% cash out refi, which the loan proceeds will then be paid to the seller and the title would then finally be transferred to me. 

Most of the investors I work with are looking at doing a cash out refi every 2-5 years, depending on the market.  

When I see a 500k property that can gross 100k in rents, I have to believe that thing is going to make a boatload of cash. 

Most reverse exchanges are done with cash from the client or a private loan of some sort from an individual or a portfolio bank.When your old property sells you will have that cash in your account to purchase the new property. 

Purchase price: $455,000 Cash invested: $100,000 This was my latest house hack.