Most top producers will refer you to a newbie, bacause there is more money in 500k single family homes.

So the broker is advertising that it is currently producing a 5% return for an all cash purchase, but has the potential to produce a 6% return.That isn't to be confused with the Cash on Cash return which is generally assuming leverage. 

Syndication is a beautiful thing and can produce amazing results for all parties.

However, the bank looks at financing 6+ units mortgages at a income producing standpoint.

You may be choosing between 1 income producer and 2 within the household.Third, if both of those properties appreciates 2% per year for the next 5 years, you realize $20,816 on resale in the latter example and $13,877 in the first. 

Very glad I decided to purchase this property with the cash flow it produces.

But good fiscal planning is to get rid of debt that isn't producing income (student loans, auto loans, credit card debt, etc) There is always a deal on a house out there and if the situation is correct you can even build your dream home sometimes cheaper than buying, based on where you chose to live.

You can promise them, let's say an interest of 6% on their money.For example, if that $1M property has a 12% cash on cash return, that means it produces $120K in income per year (after debt service).

Hey man, not a CPA or EA but here are a few things I've picked up on and recommend you verifying with a CPA or EA.The passive loss a rental produces each year can be used against your earned income (W-2 wages) if you earn below $150k married.

I still own this duplex as it does produce positive cash flow.