The tradeoff could be less appreciation than residential assets.Right now we’re working with a short term rental fund that is seeing 9% in cash flow, meaning to get to $100,000 in passive cash flow there you’d only need to invest $1.1M instead of $1.43M.Here’s a breakdown of how a greater cash return can greatly lower the time needed to achieve $100,000 in passive cash flow:7% - 100.000 / .07 = $1.43M8% - 100.000 / .08 = $1.25M9% - 100.000 / .09 = $1.11M10% - 100.000 / .10 = $1M11% - 100.000 / .11 = $900K12% - 100.000 / .12 = $833KThe first step to getting $100,000 in passive cash flow is to determine the cash return you’re looking to get in your investments, then take $100,000 and divide it by that percentage.Whatever number you get, don’t worry about investing that amount from day 1, look for shorter term investments that have higher appreciation and equity multiples for you to start out with so you can get on a path to multiply your money enough times until you achieve the amount you need to have the passive cash flow you’re looking for.

  (1-22%) = .88, now multiply this against your mortgage rate & you have your After Tax mortgage rate. 

However, absolute returns will almost certainly be subpar to real estate simply due to the force multiplier of leverage and the tax benefits.

So the current industry multiplier for the hotel & recreation industry around 10.51 EV/EBITDA.

While the exact amount may not be known in advance, a broad total would help with assessing the level of risk a potential investor would like to measure.Since NOI is calculated annually, an investor can simply multiply operating costs by 12 to get an idea of potential expenditures and weigh that figure against income in that same year.

You should have access to the MLS, so you can look up gross volume for the top level agents multiply by the commission rate and then subtract brokerage and other expenses to get a great guesstimate of potential for a top producing agent.I'm not a realtor, but all the top producers in our area have several things in common:1. 

Purchase Price: $102,500.00Purchase Closing Costs: $1,500.00Estimated Repairs: $4,000.00 (not much work needed and I doubled my estimate) Total Project Cost: $108,000.00After Repair Value: $103,000.00Down Payment: $25,625.00Loan Amount: $76,875.00Loan Interest Rate: 5.000%Monthly P&I: $412.68Total Cash Needed By Borrower: $31,125.00Monthly Income: $1,380.00Monthly Expenses: $1,275.93Monthly Cashflow: $104.07Pro Forma Cap Rate: 6.02%NOI: $6,201.00 Total operating expenses: $863.25Mortgage expenses: $412.68Vacancy: $138.00 (10%)Repairs: $138.00 (10%)CapEx: $138.00 (10%)Insurance: $68.00Management: $138.00 (10%)P&I: $412.68Property Taxes: $173.25 Lawn: $70.00Financial InfoIncome-Expense Ratio (2% Rule): 1.28% Total Initial Equity: $26,125.00 Gross Rent Multiplier: 6.19 Debt Coverage Ratio: 1.25

In my calculations RevPar is monthly room income divided by total number of  rooms multiplied by occupancy percent.

.- Multiply the gross rental income by 75% to get the net rental income.- Subtract the PITI from the net rental income to determine if the property has a positive or negative cash flow

If you mishandle the deposit, you'll not only owe the multiplier, but also the tenant's attorney fees.