Does the 45-50% include a sinking fund that is funded regularly out of rents to pay for future capital expenditures?

we washed the floor with concrete cleaner and that was it.

So flipping properties is an easy way to make huge winfall profits with little to know work..... yeah, I love those shows, but they are tv and are edited for entertainment purpouses. they dont always show all the details.... but with those types of flip you are actually doing something, even if just mowing. even with the eBay people who do similar things with stuff they get at estate sales (my mil does this with fabric), they are doing something with it, even if just makeing it look pretier (wash it) and make it avalible to a wider audience.

It is a small bar but has plenty of regulars.

Just get a regular mortgage if you can at a low rate.

From what little I know (and that is ALL I know in this area), I can't imagine how a place will cash flow given the numbers you supplied even with a large downpayment or do better than a regular MMF.

ctrentalguy,You can't possibly know an exact dollar figure for evictions, legal costs, damage, lawsuits, and many more of the expenses, but they do exist; do occur with regularity; and they are significant.

This scenario is entirely real and these situations do happen with regularity.

"I buy properties regularly" I wish I would have put that on my business card instead of Real Estate Investor.

I just know I wouldn't feel comfrontable not being able to visit my properties on a regular basis.