Obviously, it would come down to how I could recuperate more money.

CapEx is included, but is considerably lower because it's a very new, excellent condition property (I considered things such as paint, appliances, flooring that would be needed while we still own the property).Purchase Price $350,000Purchase Closing Costs $1,300Total Project Cost $351,300ARV $350,000Down Payment $12,250Loan Amount $337,750Amortized for 30 yearsLoan Interest Rate 4.6%Monthly P&I $1,731.46Total Cash Needed $13,550.002% Rule 0.85%Initial Equity $12,250Monthly Income ($1500 per unit) $3,000 Monthly Expenses (Including CapEx) $2,607 Monthly Cashflow $392 Pro Forma Cap 7.28% Total Cash Needed $13,550.00Cash on Cash ROI 34.73% Purchase Cap Rate 7.28%Est Vacancy $150PMI $200Est CapEx $63Insurance $80P&I $1,731.46My only major concern is that I'm not meeting the 2% rule (and just short of 1%, even), but this is probably the closest property I've seen, and has a significant cash on cash ROI.

When we look physically at structures around American cities it seems obvious that more lost speculating on just cash flow.

It has a climate control unit that allows total comfort year-round, regardless of the weather outside.

I won't rule out all housing involving HOAs as obviously there's always potential for good deals, but definitely will be extra cautious of them in terms of what rules certain states abide by in regards to them and how those terms can affect the deal.   

We are looking to expand our management to third party and obviously start a seperate property management company.

And obviously he will have to to pay off the underlying note when the buyer makes the balloon payment. 

This should he obvious.

They wanted me to pay off $14,000 of debt which i did but when I walked away from the closing table I paid a total of $12,746 in additional closing fees.14,000:Debt$12,746: Closing cost on new houseTotal cost: $26,977Netting me only $2,400 from both closes.I felt like putting my head through the wall as the information I was given from my loan officer was nothing close to what happened.

Michelle,Is is 20% annual interest or total for 3 years?