Today I read a book that described cash on cash return vs ROI. and I’m thinking about obtaining a mortgage to get a better return and using the cashed out proceeds to look for another deal.Details:Purchased price 15 months ago with updates (new roof/paint job) was $22,400 (purchased with cash)Cheapest 2 bed/1 bath today is $39,900 in my town on MLS.Rental income last year: $600 per month on HUDProperty manager last year: 8% monthlyLast year expenses: $120 (wife and I replaced the tub handles/hardware) I will forecast $500 for the upcoming year.Taxes paid last year: $383Insurance paid last year: $480Vacancy last year: None (Although I’ll forecast 2 months vacancy for the NOI calculation below (2 months vacancy hopefully is the worst case scenario)HOA: NoneIf my numbers are right my NOI in 2013 might be: $4147Income:$600 rent* 10 months = $6000 annual rentProperty mgt:$6000 *.92% property mgt (8%) = $5520Taxes:$5520 - $383 = $5137Insurance:$5137 - $480 = $4657Projected expenses:$4657 -$500 = $4147If my calculations are right, my ROI this next year might be 18.51% if nothing changes.Please review my thought process below regarding obtaining a mortgage.

For example, one time a guy drove up with a truck just full of stuff -- a bed, chairs, etc.

Last week my tenant called me saying that the toilet malfunctioned and as a result it leaked water for 2 hours approximately and cause a big flood into the closet, master bed, hallway and one of the guest beds (water came thru the wall).

Sometimes I do things that I don't "have to do" but I do them to go to bed at night and it'll come back to me somewhere.

@Coco Zuniga,Apt, Room, or Bed rental? 

Steve Kresse Eugene Kemp mine says I provide ongoing, but any pests as a result of tenant negligence will be on them intentional or unintentional (bugs as a result of lack of cleanliness, bed bugs, etc).

I am currently under contract on my first real estate property (and first home purchase) a 3 bed, 2 bath SFH.

It's interesting how they staged the house but then the bedroom, one of the most important rooms, has ratty comforts flopped on the bed.

Year/bed/bath/ size of the trailer being sold in the deal.It is not the end of the world if you don't have all this information; a preliminary evaluation can still be done.Hope this helps.Sam

Hello everyone, I have a 2 bed, 1.5 bath townhome in Davidson county that I am trying to rent out.