I drove by it, both last night and this morning, and it doesn't need much to be a finished 2/1 cottage.

.#3- 2 bed, 1 bath single familyBuilt 1900Purchase price- 22500Down payment- 5625 (25% down on 15 year portfolio loan, 5.25%)Rent- 500Mortgage- 135Taxes- 20Insurance- 30Property management (10%)- 50Maintenance (10%)- 50Vacancy (10%)- 50Cash flow- 165Rent over Purchase price- 2.2%Return on cash- 30%#4- House (4 bed, 1 bath) & Cottage (1 bed, 1 bath)Built 1940Purchase price- 35900Down payment- 8975 (25% down on 15 year portfolio loan, 5.25%)Rent- 1100Mortgage- 216Taxes- 28Insurance- 40Property management (10%)- 110Maintenance (10%)- 110Vacancy (10%)- 110Utilities- 180Cash flow- 306Rent over Purchase price- 3%Return on cash- 37%The community where I'm purchasing properties is about 40 minutes away from where I live and work.

I bought a simple cottage style plan online, got a local architect to slightly alter the foundation and seal the plan, and set to work with a shovel digging the foundation.

Okay my wife just brought over a glass of wine and fruit / cheese plate so I am done.Cheers,Darin

Rents go from 900-1400C hoods are cottage style homes that are deemed functionally obsolete due to small sq footage, 1 bath, 2bed, etc.  

It will come out awesome and have a cottage feel.

My goals are to have enough passive income to support me and my family(obviously) and I'd like to have a no-kill sanctuary for animals somewhere between san antonio and austin(they have such a high population of strays that get gassed- in the hundreds of thousands in SA alone) and a multi-family complex in San Diego for single parents/low-income families that would consist of cottages with yards(for the kids to play in- so it would feel as though they live in a SFR not an apartment).

Karen,Most of what we do on the residential side is historic exterior bungalows and cottages.

Each unit can rent for about $600/mo.The good thing about the property is it had a bonus 1 bedroom cottage in the rear of the house.

So find a way to get rental income: finish the basement or garage into a MIL or maybe even build a backyard cottage if the rental income vs. construction cost pencils out or as a method of last resort...move back in with the parents.