Getting into to a property for less money can equate to a higher cash on cash return.

More housing supply might equate to less demand for your existing property. 

This is probably me being a beginner but it seems like the math isn't working out 100% and something else is missing in this equation.

When estimating my initial investment calculation for the purposes of estimating ROI, should I factor in just the closing costs into the equation or should I factor in closing costs plus all pre-paid/escrow items. 

Now if you add vacancy and maintenance to this equation, it looks like such an "investment" in Cambridge is going to bleed 5 to 6 k a year on a cash flow basis.

To get your friend out of the equation, request a 3rd party for an opinion from an appraisal company. 

Only complete income number is for rent, but if I have a one time payment or something that is not recurring how do i add that in, or are you saying that is something i should not add into the equation.

We want to raise capital with passive investors, ones that want to take advantage of the opportunities that NPN's create but are perfectly content and happy to have us do all the work and heavy lifting.Learning the "how to" is only part of the equation.

As part of that equation, you have to have a plan for financing otherwise, you won't know what cash flow you will be able to achieve, as that is a function of the interest rate and amortization period. 

The current tenant base shouldn’t be a large part of the equation.