What's up everyone - first time posting on DA forum...be gentle!

I had trouble deciding whether I wanted properties A+B, or B+C, or A+C, or C+D, or C+D+A, or, or, or ... 

Thanks @Mitch Messer @Neil Da Silva !  

We have 50,000... leverage some.. and then ta, da - you have a property paid off and there's enough cash flow.

@Helder M Da Silva Santos I made the move from Canada to Orlando back in August and #1 reason was weather also. 

@Chris Da and @Raquel L. have property in Pottstown ...

Maybe you can take it to the DA and there might be some criminal aspect that would force these folks ( sellers to pay you over time.) 

:c)Do you live on da sout side down dere hey?

Then add, you will report them to the state realtors board, DA etc, Scare the heck out of them, they will fold, Also call the tenants, tell them to not pay the PM and pay you. 

We can take the same line of reasoning when Analyzing other Risk Hazards such as loss of income; loss of property ; (house loses entire value) ; In addition , I think we need to look at other non cash returns when considering leveraging versus non leveraging, as some of Leveraging benefits don’t show up on the cash flow line Total return Calculate total return for scenario sake – assume 25% tax bracket and 5% appreciation Option 1 Cash 2250 Month * 12 months 27K a year 27K / 300 K = 9% ConC return (as stated) Other returns Equity build up = $0 (already %100) Tax savings (assume 40 K tax basis , 27.5 year amortization ) $1450 per year DEPR allowance * 6 houses = $8700 $8700 DA * .25 (tax rate) = $2175 Appreciation Appreciation 5% = 50,000* .05 = $2500 year appreciation 2500 * 6 (houses) = $ 15000 Total return = Cash + equity + Taxsavings + Appr = 27000+0+2175+15000 = $44175 4175/300000 = 14.71 total return Ending Equity => Value – Liability = ($300K *1.05) – (0) = $315K Option 2 Cash 2880 Month * 12 months = $ 34,560 a year 34.45K / 300 K = 11.52% CoC return (as stated) Other returns Equity build up Using financing model above (25K financed at 5% over 30 years ) – yields $360 equity build up in year 1 $360*12 houses = $4320 Equity build up Tax savings (assume 40 K tax basis , 27.5 year amortization ) $1450 per year DEPR allowance * 12 houses = $17400 $17400 DA * .25 (tax rate) = $4350 Appreciation Appreciation 5% = 50,000* .05 = $2500 year appreciation 2500 * 12 (houses) = $ 30000 Total return = Cash + equity+Taxsavings+ Appr = 34,560 + 4320 + 4350 + 30000 = $73,320 73,320/300000 = 24.41 total return Therefore you get more sizeable return on your money for assuming the probability of more risk, even if the impact is lessened