The monthly payment will be higher, eating into my cash flow.

The monthly payment will be higher, eating into my cash flow.

I hate HOAs ... the fees eat into your cash flow, fees can go up but won't go down, for what the fees are you could hire a gardener etc to give the same service on a property w/out HOA, they limit your ability to renovate (i.e you can't fix the exterior or add on to a condo), they may have now or in the future limits on using as a rental, you generally have less control over your investment and the land (which is really the valuable part of RE over the long term).

When you say 12% cap rAte will be reduced to 6-7%, do you include interest expense too..otherwise just maintenance can't eat away almost half of rental.

That expense really adds up in the end and can eat into your cash flow and ROI..

The logistics of buying something, renovating it for an unknown variable cost and then (hopefully) selling it, for a profit mind you, before the carrying fees eat up your profits is a scary game.

Factoring in self maintenance (eating/showering/gym/shower/caring for dog/ect), thats another 3-4 hoursI went to a local REI networking event recently and marketing for properties was talked about.  

How do you eat an elephant?

If you could do the HUD route and put 20% down, that would be best because you'll have no PMI eating at your cashflow.Justin

Would like to grab a bite to eat sometime and share ideas.