My guess is you and your investors will lose every dollar you put into the deal unless you are hotel experts.

I'm guessing that you'll lose money on this in the long run.To figure your cash flow you have to take into consideration all of the expenses of maintaining a house.

This would enable you to get into the property and not lose the deal.

It's great because I don't lose rent and don't have to deal with switching utilities.If you have a good relationship with your current renter, it really helps with the showings and transition.

It is important that your wife is happy, but if you are unable to build up a reserve fund, what happens if you need to replace your roof, AC, repair your car, or even worse you lose your job?

I'm just applying the 50% rule that says 50% of gross scheduled rents will go to vacancy, expenses (taxes, insurance, routine maintenance, make ready costs, tenant damage in excess of deposits, utilities at least when its vacant, CPA fees, legal fees) and capital (roofs, floors, appliances, furnaces, sewer lines, etc.)

If I ever lose my job, I still have funds coming in from my investing.

They do not want to risk losing their investment.

Last two we soldSell Price 105, 000 bought for 43kSell Price 124,000 bought for 32,000 ...what you dont see here is the amount of renovation required, this one needed new septic, roof, hvac and the list goes on.If I would have offered 30% of ARV on any of these, I would lose/have lost money on all of them.

One small mistake in investing in an area that you are not personally familiar with could turn a higher return into a losing investment.