Between principal paydown and home appreciation, you’re still likely to make at least 40k per year, with that amount increasing to 46k in the second year and 52k in the third.To make this a worthwhile deal, I think you’d need to hold it for at least five years.

My assets have increased significantly over that time, so I can tell you from experience that you're on the right track!

And you can't buy it with your LLC to increase the value because it could be argued that it is not an arm's length transaction.

Even with the recent rate increase of the last couple of years, f/f is significantly below S&P lifetime return.

Since the tenant started renting, the market rate for the rental property has increased significantly. 

You will have an opportunity to refi sometime in the future where you can increase cash flow and/or recoup down payment. 

We just increased ours to a $50 late fee after 3 days and $10/day after that.

If you increase rents, if you go MUGS and put the utilities, if if if ifHaving owned and sold businesses and 1-2 properties, I have learned that I do not want to pay for POTENTIAL, but want to pay for what it ACTUALLY produces.Of course the seller will want the max, and the real estate agent will also want the max, so will push for the Pro-forma or potential income.....and base asking price off of this.I find that my numbers to evaluate properties almost never work with the asking price (based off potential), but almost always work with ACTUAL value.

They were charging another homes repairs to my home and wasn’t caught until I threatened legal action.I reached out to the new person who was managing my property to inquire about a lease renewal for my tenants and make it clear I needed to increase the rent to cover expense increases on the house.

So as you move down in price point, competition increases or if the deal gets closer to cash flow with lower down payments.