Perhaps modest cash flow now, but don’t be short sighted on the larger (appreciation) picture!

The note of $1.79M reflects the total needed to secure the property next door ($200K), paying off the principle balance on the note for 77 South Street ($240K) and all estimated expenses to build out 14 apartments.

If you get, say, 10 properties before you're 30, and each property gets a rental income of $1000/month before PITI and other expenses, when you're 60, you'll no longer have Principle or interest, and can just collect fat checks.

@Adam Soelberg I recall from a RE Principles class I taught, once something is installed as a fixture it becomes "Real Property," no longer personal, and cannot be removed along w personal property.

We have set our sights on a cheaper townhome in the Tempe area next to ASU.

You can always make more principle payments. 

Running the numbers sight unseen is good practice, but you need to see how actual conditions of the properties are vs what you can see online to get a good picture of what the market looks like.

Generally speaking, you are entitled to exclude up to $500,000 for a joint return if the house is your principle residence in 2 out of the last five years.

Hey Jacob, congrats on getting started.I would do just that - search those sights and get a feel of what the inventory is comparable to a unit similar to the one you own/want to own, in the zip code you want to buy in.Rentometer and Craigslist have always done me right.Somethings to consider when running the comps - Location (neighborhood class - a,b,c,d etc???)

My question is: should I use my $10,000 that I have saved on a property down payment or should I put it to the principle on my primary residence so that I can take out a larger HELOC to use for down payments?