Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

It doesn't book as frequently as the smaller house, but generates more income.

Originally posted by @Eddie Torres:@Natalie Kolodij Standard or foreign LLCs in California still cost $800 annually unfortunately.  

A 6%+ annual appreciation rate is decent. 

I make roughly 150k annually but have 200k total in student debt from graduate school.

Yes I often hear PPR and DLP in the same breath as they both seem to offer solid income with fairly low risk.

I invested in ODC Sunbelt Diversified Porfilio and after 2 years received 1.5 annually for 3 months.

Higher taxes rates can impact both your buying power and your passive income as an investor. 

When you say "section 8" tenants, are you looking at low-income housing tax credit type properties, or standard rentals that are in lower income areas and therefore cater to HCV tenants?  

One is focused on real estate and its all military folks and vets (I'm active duty Navy) and the other one is focused on being well rounded, while also building wealth and passive income.