Purchase price: $615,000 Cash invested: $630,000 Sale price: $1,500,000 New Construction

Im not a fan of seller financing unless that property is free and clear and the seller is offering reasonable terms NOT on money they have borrowed. just too many people get into this type of thing without understanding the whole picture, like title being moved into the buyer's name, due on sale clauses... etc. etc. also, just because its a very commonly overlooked guideline which makes financing on 3's and 4's a little challenging: FHA requires the property to self-sustain its own PITIMI by the rents.

The cap rate is one tool among many and this one is really only able to give an apples-to-apples comparison about the sale price across multiple commercial properties.

Focus on having a budget and having a strong financial base EXACTLY I started RE sales right at 18 when I my license saved enough in the first 14 months to buy a home to  live in.. 

Here's how a seeming tax disaster turned into a strategic triumph.Picture this: You're sitting with your CPA, reviewing the sale of your residential rental property.

Purchase price: $160,000 Cash invested: $40,000 Sale price: $268,000 I bought my first house in Kalispell Montana as a long term investment and possibly a rental.

Save money for a decade, build equity in house…sell house and use savings + capital from sale to purchase house in Montgomery County MD.

Talk to your attorney, but I believe this can help not enact the due on sale clause.  

Because it takes "an expert" to explain novation, avoidance of due on sale clauses, ignorance of state foreclosure rescue statues trusts, why you don't need title reports, attorneys or reserves, and don't forget to throw in the Garn–St.

Purchase price: $45,000 Sale price: $175,000 I lived here for a few years then when I was married it became a rental.