Purchase price: $169,000 Cash invested: $33,800 Property was recently renovated to increase the value of the property and the cashflow What made you interested in investing in this type of deal?

@Josue RamosRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

You are already paying rent, so pay it to yourself to increase cash flow and accelerate savings for the next investment. 

So just something to think about.I would be looking hard at their financials, and I would look hard at what capex is needed. 

@John Friendas  it's close to the 1% rule which is good, but I would still run the financials on it. 

Depending on your market it may not make financial sense at all.

You'll figure out a good price for yours, but be sure to check the market every month or so, and track whether it is increasing, stabilizing, or decreasing.

While rates may not decrease, the significant double-digit increases should level off.

As other people have mentioned, does it increase risk of being rent controlled down the road?

That said I like to be able to run year end reports with an estimation of tax liability so I can provide financial statement information to investors/etc.