On that amount borrowed from the bank I figure maybe 8% interest (not sure on current rates) so it would amount to $1,344,000 x .08 percent = $107,520/year.In conclusion subtracting $107,520 yearly payment from the $144,000 NOI would get$144,000 - $107,520 = $36,480 profit.which in turn on the $336,000 down payment would yield a ROI of $36,480/ $336000 = .01085 or about 10.8%.This is one of my first properties that I have analyzed but want to make sure that I am doing them in the correct way, so any input you guys could give me would be great!

The more angry you become the more ludicrous you draw your conclusions.

Have a clearly defined exit strategy and define what happens if things go south or if one of you wants out prior to conclusion, what the profit splits are and how that is defined and when it is paid, what happens if you lose money on the deal, what about unexpected expenses, cost overruns and you end up holding the property for a lot longer than thought because the market changes.

Is your conclusion it wouldn't cashflow, based on return on investment? 

I’m starting to reach the same conclusion.

@Brie Schmidt, yes the 2x only covers the damages for the violation of 5-12-080(a)(3) (not indicating the bank where the deposit would be held on the written rental agreement), 5-12-080(b)(1)(2) (not providing a receipt that complies with the act), 5-12-080(c) (not paying out interest within 30 days of the conclusion of each 12 month period) and 5-12-080(d) not returning the security deposit within 45 days of tenant vacating. 

I'm glad to hear everyone agrees with the conclusion I came to as well.

:Taxes have NOT been taken into account, but I think you all know that real estate beats the stock market hands down in this category.I am not sure how you came to the conclusion that real estate gets favorable tax treatment as compared to equity investing. 

If not, you might not need this complication.If you reach the conclusion you need it, then since you are special just for being in CA a simple LLC might not be the best route for you - look into Delaware Statutory Trust.

Seems a little premature of you to jump to such conclusions so fast...I am not on this forum 24/7...I have responded to each and every private request but I am not so sure I will to yours....