This is very common in California, as you are experiencing.Consider this:(Annual Cash Flow + Annual Appreciation) / Total Investment = ROIIf you bought the house (simple numbers) at $500,000.

Financial institutions like to see annual leases typically.

If from anyone other than your spouse, the IRA will need to be setup as beneficiary IRA and annual distributions based on your life expectancy will apply, so keep this in-mind when investing the beneficiary IRA in real estate. https://www.irs.gov/retirement-plans/plan-particip...

Hi All,There is a Project HUD property in Ohio market that I have my eye on which I know has lost its status due to continued low REAC (annual inspection) scores.

That’s not very good since historically the stock market is closer to 8-9% annually, without much work from you, but the duplex will require some “work”. 

However, everything else about this property lines up very well, and I want to pull the trigger or move on asap, since I've already analyzed it forwards and backwards.Here are the details:625k PPcurrent monthly income $5,600, annual income after expenses (utilities, taxes, maintenance, repairs) is 46k, which would cash flow after debt service, but not a ton.However.

My projected gross annual income in 2024 is ~$130,000 (with all things added in and a few assumptions made).

Some don’t want to deal with tenants and prefer to flip, some like to idea of holding property and renting for annual cash flow, and others become the bank and invest in notes.

They can absorb a small annual increase.Mike

You calculate it like this:  CCR = Annual Cash Flow / Initial Cash Invested.