If we make a profit of $130k by selling the townhouse and minus all the cost (agent commission, selling cost, maintenance), then we use it to recast on the sfh, the sfh mortgage will be down about $800/month.

All that means is everyone puts money into the deal to buy this 5 plus apartment building and split the net profit if any.

Removing tenants is a serious pain in New Jersey - though I realize those specific deals may be rehab and profit opportunities.

With the right improvements (even modest ones), you could increase rent and make it a more profitable rental without starting over with a new property.

Good school districts make for better long-term investments, so it’s something to keep in mind when choosing a property.So while schools might not be your number one factor when flipping, they can definitely help increase the speed of sale and final profit.

Hi Antonio,Many investors are finding and profiting from rental properties and flips in the Greater Nashville area.

I ran the numbers for any investment below 250k and for the 3 year hold period after 1% annual management fee and 1.25% startup fee, and the profit split, comes to 10% compounded return or an 11.2% avg annual return on a 1.33 EQM on 3 years.

A lot of this is just assumption, assuming a Real Estate Agent is ONLY arguing to defend there profit generation.

Do you think you have to invest in a large city to make a profit? 

If you sell the house, your repair and improvement costs will be added to the cost basis, reducing your taxable profit.