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Paying all cash will get you cash flow equal to half the rent.Cash on cash = annual cash flow / total cash investedThis can often be higher with some leverage than paying all cash.If you manage yourself, I think you can cut the 50% number down to about 36%.

That's $300 in lawn care ($25 per week to mow), $900 in mortgage, 1/4 of the annual tax bill (guessing here) $300.Holding Costs = $1,500You're now up to $31,500 in associated costs to the buyer.

Still dismal results as outlined below.ROI %11.03% CAP Rate 4.04% CCR 14.14%Ask Price $64,600.00Loan $51,680.00Down20% $12,920.00Closing6% $3,100.80 (Estimated high for cushion)Reserves 6 mth $3,214.69 (PITI only)Touch Ups2% $1,292.00Property Type 3Rent / Unit 483.00 (Based on reported annual gross)PITI 535.78PM10% 144.90Expenses40% 579.60Total Expenses 1260.28Monthly Gross $1,449.00Annual Gross $17,388.00Monthly NOI $188.72Annual NOI $2,264.61Recover Funds $20,527.4991.7MonthsThank you for taking the time to read and I sincerely appreciate any guidance you might suggest.

The association included $50,000 annually for attorney fees and used that much or more every year primarily suing fellow owners for stupid things.In all of my familiy's history, after all the real estate developments, tranactions and tax planning, we have never collectively come close to spending $50,000 spanning more than 90 years.

Do you plan on making a few long term investments are will you be actively making multiple transactions annually?

We are negotiating an annual percent of return.

Another way to say that is you want a GRM (gross rent multiplier, purchase price / annual rent) of 1.5.

Define your end goal and the play around with the rule of 72 to figure out a more moderate annual return that will get you to where you want to be.

Still, at the end of the day, if your money is gone you have nothing.I can show you my total annual return of 20% for 20 years in Portland RE.