That money can very easily disappear if for some reason you aren't able to close.

Flip is another word that people use to mean sell but after it was held as a long-term investment.The intent is important here as it will determine whether the sale will be eligible for a 1031 exchange or if the gain can be eligible for capital gain treatment.Unfortunately :)  Basit opened the can of worms that I hoped to keep closed. 

Total profits last year—subtracting property taxes, management fees, insurance, and repairs—were approximately $12k (which was then divided into shares for us and relatives).The city is Grants Pass, Oregon, population 40k, with median household income around $50k (50% lower than the national average).

Closing next week on two more with even better numbers.

Check out deals closely.

But rent is very low in IB( which i was aware of) but had to go bit more lower then expected to find a decent Navy couple.

Starting out if your house hack lowers your cost of living you are doing well.

@Thomas Richardson As @Mike Grudzien mentioned, reading my book doesn't exactly tell you how to "pitch" to private lenders but it does help you understand how to present deals to novice or new PMLs within your network by being able to show them how you'd protect and safeguard their capital with things like equity protection, title insurance policy, loss payee on your property insurance policy, going through a third party title and escrow or attorney to close the loan, etc.

I just closed the sale of the first four investment properties I ever bought.  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.