They tend to cash flow really well ;) They cash flow well, but the rate of return is dramatically reduced.Assume a house costs $200,000 and rents for $1,500.

Purchase price: $1,300,000 Cash invested: $130,000 Sale price: $1,650,000 We work with an investor who purchases the house and secures a deed in his name.

Purchase price: $565,000 Cash invested: $125,000 Listed Price: $585K (originally $585K, 30 days on market).

They're affordable enough to allow good cash flow, while also attracting decent tenant quality.

However, if cash flow is important to you, there are other properties on O'ahu that would make for a better investment and that your family might also enjoy.  

Would you be able to do a cash out refinance and still cash flow?

Purchase price: $214,000 Cash invested: $180,000 Sale price: $550,000 Old VFW building What made you interested in investing in this type of deal?

What I mean is, some investors look strictly at cash on cash return, some look at cap rate, others just want to make sure their mortgage is covered.

Quote from @Mathew Chacko: Quote from @Na Person:  I too was a little skeptical of sending a large cash payment to an unlicensed entity (1031 facilitators do not need a license). 

There’s a big difference between an area that attracts stable tenants and one where you’ll be chasing rent every month.Personally, I’ve built a 12-door portfolio here, and it’s been a mix of cash flow and appreciation.