i just did the math with the 50% rule. your cash-on-cash return is 5.5%.you would have some equity though so your net worth went up instantly.

I am a Realtor in upper SC and have seen many instances of people getting licensed and thinking its going to be instant success for themselves.

I will get back about $2K at refi closing (would be $8K if I had the property for six months before refi) so In the end I will have about $15K cash out of pocket but an instant equity of about $33K plus monthly cash flow.It all depends on your area as far as what is achievable; in Houston, the housing market is cheap and exploding.If you want to be completely passive then you should look into a property management company; in the end, its all about the numbers.

Buying below market gives you instant equity as well as insulation against unforeseen costs, slowing markets, etc.

Or is there a way for me to buy it with no money down since I will have instant equity?

Or, my instant hot water running through PEX compared to SFD H/W heater built 20 years ago.Just as to the relevance.

I put 20% down and had instant equity, for my next property.

If it needs patching of walls, new flooring, some fixtures, cosmetics, then you could probably do it.Also keep in mind, the benefit to buying a gutted property is that you have instant equity when it's done.

you can instantly tell the difference between the sounds of a .22, a .32, a nine, and a .45; and you know if it's ten rounds or more in a row it's a Glock!...

Realistically your cash flow from those rentals would only be about 400 a month, but you've instantly gained at least 100k in unrealized equity.