For a $300,000 property, this could be $6,000 to $15,000.Mortgage on Rental Property:Loan Amount: $240,000 (assuming 80% financed at 4% interest over 30 years).Monthly Payment: Approximately $1,145.Other Expenses:Property Taxes: Estimated at 1.5% of property value annually ($4,500).Insurance: Estimated at $1,500 annually.Maintenance: Estimated at 1% of property value annually ($3,000).Property Management Fees: Assuming 10% of monthly rental income ($2,400 annually if rent is $2,000 per month).Vacancy and Turnover Costs: 5% of annual rental income ($1,200).Total Initial Investment and Annual Operating ExpensesInitial Investment:Total Borrowed from Equity: $150,000Down Payment for Rental Property: $60,000Closing Costs for Rental Property: $10,500 (average)Total Initial Cash Outlay: $70,500 (initial investment from equity) + $10,500 (closing costs)Annual Operating Expenses:Property Taxes: $4,500Insurance: $1,500Maintenance: $3,000Property Management Fees: $2,400Vacancy and Turnover Costs: $1,200Total Operating Expenses: $12,600 annuallyExpected ReturnRental Income:Assuming $2,000 per month, annual rental income = $24,000.Net Operating Income (NOI):Annual Rental Income: $24,000Minus Annual Operating Expenses: $12,600NOI: $11,400Debt Service:Mortgage Payment on Rental Property: $1,145 monthly, $13,740 annually.Total Debt Service: $13,740 (rental property) + $8,592 (equity loan) = $22,332 annually.Net Cash Flow:NOI: $11,400Minus Debt Service: $22,332Net Cash Flow: -$10,932 annually (negative cash flow initially due to high debt service).Cash-on-Cash ReturnInitial Cash Investment: $70,500Net Cash Flow (first year): -$10,932Cash-on-Cash Return: Not applicable initially due to negative cash flow.Long-Term Appreciation and AdjustmentsProperty Appreciation:Assuming a 3% annual appreciation, the property value could increase by $9,000 annually.Rent Increases:Assuming a 2% annual rent increase, rental income will rise, improving cash flow. 

It's a great question because it may be difficult to find these operators since they can't advertise their deals.I'm looking forward to seeing who comes up on your listThanks for the questionGino

These moves could spur further economic growth in the area, create jobs, and possibly attract more tech investments, all of which could have ripple effects on commercial real estate and local housing markets.For investors, this development could present opportunities in both residential and commercial real estate, especially with the potential influx of new employees and businesses to support these expanding operations.

Looks like they are not transparent about who they are or how they operate.

They'd be a partner and help provide solutions to operational challenges when scaling, we'd bring tech in like Breezeway for scheduling, give them a company card with spend limits to buy supplies, they even ended up landing a deal with a local laundromat to wash and fold there after-hours to make their lives and ours easier.Truly a win-win. 

Once all three units are operational, you’ll have three income streams to support your expenses.Evaluating if it’s a Good Deal:Cash-on-Cash Return: After figuring out your total investment (down payment + repair costs + holding costs), calculate your net annual cash flow (rental income minus expenses like mortgage, repairs, insurance, etc.).

Ok here is the thing Darnell, for private lending we weight ~40% on the property "deal" itself, and 60% on the Operator themself; if they know what there doing, can they pull it off, do they have the "chops" for it, are they contingency ready, etc etc.. 

Hi Samuel,When considering how to pay off a loan faster, both methods you've mentioned—making a large principal payment at the end of each year versus bi-weekly payments—can be effective, but they operate differently.Large Principal Payments: Making a large payment once a year can significantly reduce your principal, leading to lower interest costs over the life of the loan.

If the opportunities are limited and cash is plentiful, pay down debt, increase rents and make everything operate better. 

Just buy your first rental as a house hack to get your foot in the door and get some operational experience owning/ operating Multi-family.