The estimate for the initial repair came back at about $6,500, and it involved repairing the rear wall cracks with urethane injection.

You need to reinvest in your portfolio with all proceeds and probably inject additional capital as available (plus having reserves or credit you can tap if a big cap ex comes up).

The structure you are looking at works fine so long as the asset generates sufficient cash to cover expenses; however, as all RE investors know, the unexpected furnace malfunction or roof failure requires injection of outside capital. 

If you want to "inject" money every year to hold a rental by all means go for it.

After initial acquisition of property its easy at:Excess annual cashflow / initial equity injection So let’s say you guys a property:$100,000 down on a $500,000 property, resulting in a $400,000 loan with the property throwing off $10,000 a year in excess CF after all expenses and mortgage payments.

Looking ahead, investors will continue to inject funds into apartment assets as a winning bet to yield successful returns over the long-term.

You can usually reduce that risk of a contract for deed by injecting a no encumbrances clause on the title, into the contract.

You’re getting in for a really decent price, injecting tons of equity and it cash flows handsomely.

Essentially it would work something like this…1) My LLC purchases the property 2) He will only charge me COST on the labor and materials (no profit or markups) which will save me around 30% on regular contract figure he gives me in my market which is very expensive 3) He will also make 300k of his own liquidity available to inject into the deal (I will put some of my own cash in and get a HML loan for the rest).

But, let me inject another thought.