This example property would bring a 58.12% Cash on Cash Return (absolute grand slam!).

spoke to a guy earlier this week that has started and sold several. noted if you do not have $2M to start with its probably going to be extremely challenging as you need to get to $200M in originations a year to really make it worth the while as there are specific staff like compliance etc. that are needed from the get go.Having started several businesses i have learned trying to do it with staff and only a few hundred grand will not work.Thats also thing with loan officers, most states now require them to be W2 not 1099. 

@Landon Bleau if you want to look a little farther south along the Lake Michigan coast I run the area from Grand Haven to Ludington.

. $80k in equity isn't much in the grand scheme of things.

So now we have conditioned when a person leverages self to the gill's, taken on mountains of debt and the grand some of there career is waiting tables or making coffee and some toilet-paper degree that a bajillion others also have, and maybe a few years experience at best. 

In new builds we're using mostly 12' which skews that 3.4 number upwards a little bit, but pretty minimal in the grand scheme of things.As an aside I just finished planning a base model home that is coming in at $64 per sq ft including soft costs.

The entire building will make this unusual humming sound from between the walls. 

Quote from @Lauren Olicker: Thankfully, all of these grand assessments are now levied, and those selling have either paid or will pay them at closing. 

Deals like that will be grand slams in 5-7 years- great cash flow and tons of equity. 

@Ashni Modi I really like new construction SFH in Casa Grande, you can find properties that make great rentals from $300-400k, they have a 7% rent to price ratio with zero maintenance repairs or cap ex.