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.

One of which you mentioned, PM Fees, but it will also have other expenses such as repairs, improvements, utilities, etc.Therefore, your cash-flow will be several percentage points in the negative.Should you invest?

That way, they have 5 years to improve their credit to qualify for a loan and then refinance.

However when I think logically about depreciating damages I use this as an example:If I built a house and rented it for 28 years without making any improvements, the tenant could burn the house to the ground and not get charged one penny because the entire house was fully depreciated down to $0.

The median home price in Cape Coral was $385,000 in September 2023, presenting a good investment opportunity. 5) Development Potential: Cape Coral continues to see ongoing development and infrastructure improvements, including new commercial centers, parks, and recreational facilities.

on the bleachers right now just learning so i got a question If I find a  duplex for 350k, put 20% down , 30 year mortgage after the 30 years is over and the property is paid off,  it cost me more than 700k that just doesn't sit right in my stomach.

You'll have to find an answer based on zoning, demand, and your ability to control the appearance of the additional improvements - you don't want to create a junk yard behind your triplex!

If it really does work like they say it's a good deal if you have the stomach for remote-renovating, I don't know their markets well enough so I'm not educated enough to say.I'm going to do a little more research on providing loans, I don't think that it's for me at this point but I've never looked into it much.

These improvements alone in the area where the property was located would have been as much as the asking price for just the land itself.

For primary residence #3, we bought in the path of progress; so, not a live in flip per se but similar in that we will get high organic appreciation and also add value through easy rehab such as refinishing floors and railings, replacing fixtures, improving landscaping, upgrading tile, etc.