I don't know your situation; if you have 6 figures in cash reserves and waiting to see what is next, go for it.

In the future, I will also be scanning my buyers much more in depth to make sure this does not happen again and that they are legitimate cash buyers, not just someone jumping on a good deal.

There was a last minute DPW lien that added 6 figures to the debt on one property worth $60,000 before the lien.

(cash flow from operations / total rental income) * 100% How much cash flow are you getting?

Purchase price: $20,000 Cash invested: $20,000 Sale price: $85,000 While searching for land that had timber.

People look to Detroit for cash flow, and you can definitely find it there, but the median price has also doubled in the last 5 years.I would not be surprised to see it double again in the coming 5+ years too.

Just keep in mind that portfolio lenders will want to see the overall cash flow and occupancy rates across the whole portfolio.Get ready with a detailed financial analysis.

Just a heads up.So you calculated out you need  $6 million worth of apartments to hit your goal.A commercial loan may require 20% to 30% down in cash, cash reserves, working capital, and closing costs.You will also need earnest money cash.The lender may also require certain repairs to be done Shortly after the loan is made.The lender may also require the Property to be stabilized as far as occupancy percentage is concerned, leaving little on the bone as far as sweat equity.Good Luck!

Since you're a cash basis taxpayer, I think the rule is that you can deduct the full amount.

Purchase price: $20,000 Cash invested: $20,000 Sale price: $85,000 Searching for land that had timber.