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.

You lose:- benefits (such as medical) which are costly to get on your own- a source of recurring funds- some ability to get lines of credit of loans- ability to qualify for various loans at banks- a lot of your ability to get back in the job market several years later, if you change your mindIf you do, make sure you have a large cash cushion in the bank.

However, I do not have a problem getting a loan for a rental as long as I am cash flow positive, and I consider it a business loan (although you will likely be asked to personally back that loan).I made the decision to get my first rental property (I do not have one yet) after having a bit of a cushion so I am not hurt by negative events like a non-paying tenant.

Assuming the market stays essentially flat for the next decade, I am thinking I will look at the mortgage and determine when the house will hit 25% equity, and agree to get the owner off the note around that time (25% EQ + 6-12 months cushion).

You have plenty of cushion to do it.My only concern with tying your money up for that long is how many houses you would typically buy in the same time frame.

Plan for them or have a large enough cushion so you can ride them out.

After a while you have that cushion and things aren't quite as nerve racking, but still are, at least for me.

But, I made sure I put some things in place before I decided to leave my job 1) I made sure I was making 2x my monthly income in my rentals to replace my W2 income2) I saved 6 months of living expenses (from flips and other deals) so that I had a little cushion in case Murphy's Law took effect3) I put together a gameplan of what I wanted my real estate investing business to look like once I left my job -- If you don't have a plan, you're planning to failHonestly, I've been blessed and I feel like it was the best decision I ever made in my life.

Run the numbers, pull comps, estimate repairs (with a cushion), bottom line - offer what you are willing to pay but more importantly what you can afford.

The consumer is completely tapped out - upside down on their houses and out of cushion on their credit cards.