Many believe we are in a mini-bubble and I'm convinced the market may remain strong or semi-strong (although appreciations will decrease in rate).If/When shadow inventory is finally released (eventually), it may not cause a "flood" to the market which I've heard over and over again.

I also understand that my cash flow may decrease to due pmi.

Additionally, homes spent an average of 51 days on the market, which is a decrease of 16 days from one year prior.The total dollar volume of single-family properties sold was $555,757,542 or 24 percent higher than the same month last year.

Because of this inability to ever get conventional financing on a five or six plex, the result of adding additional units can actually decrease the value of the property even if it increases the gross income.

I was looking at a retirement city that has 25% vacancy rate.Here is some other data:-population 21k-population growth 14% (since 2000)-median sales price 129k-year-over-year return -12%-quarter-over-quarter -14%-sales price 5 years ago 192k-2006 sales price 270K-median rent listed 1250$ (-22% change since a year ago)I like the fact that there's definitely room to grow (between 2006 price and current), however I am concerned about 25% vacancy rate and decreasing rents.

I want to be hands for the first only to get a better grasp on the whole process.Rent @ $700 is conservative.If 5k purchase--NOI 3840, 12% coc, beats 2% rule.If 10k purchase-only 10.3 cocPlan to pull the equity out after 6 mo, so the cash on cash will increase while the NOI decreases.

You will run into an issue of transferring the funds out of the S-corp if you basis is zero.Profits increase basis.Adding money increases basisTaking money out decreases basis.

So, putting an extra $10k now (as an example) would mean that your loan balance decreases faster from here on out to get you to the magic 78%.

:)Historically, real estate has tracked inflation, so holding real estate for a long time is more of a hedge against the decreased value of the dollar than it is an automatic wealth builder.Of course, when you combine time with all the other factors you mentioned, that's where the money comes from...

Purchasing property with no down payment significantly decreases the potential universe of property available for purchase - again achieving positive cash flow can be done, it's just much more difficult.Good luck!