I just hired a new CPA who is also a real estate broker.

What a great analysis.

Purchase price: $169,000 Cash invested: $35,000 Looking to put 70K into the separate garage to make a 730Sqft home.

@Frankie Lotrec if you have an existing loan on the property and you plan to legally convert from a 4 unit to 5 unit , you should check the loan documents because you’d essentially be converting it to a commercial property, since 5+ units is considered commercial and subject to different appraisal approaches and so it would rule out the property being considered for purchasers utilizing residential financing.  

If you have an issue with that, or are long distance, hiring a property manager is a must.

The seller is offering seller financing at 2% interest with a 9-year balloon.

She could hire a full service PM and net $1,840/mo.

There are dozens of problems you can face as a landlord, and I feel it's important to have a plan for all of them.

Eliminate debt, establish a budget, and save.

If you're looking for cash flow you can easily make $300/mo net on a single family property in a better neighborhood/condition.