The fact remains that the vast majority of newbies fail in a relatively short period of time.

The two major differences are that while you may have the same coverage on your structure, you typically have much less coverage on your contents and sometimes this coverage is limited to appliances or a specific list of items.

I just want to make sure I have an understanding of the 50% rule. 8% Vacancies6% Insurance11% Taxes11% Maintenance/Utilities6% Management8% Major ProjectsWith the remaining 50%, you subtract the mortgage payment.

I’m surprised that your CPA made such a recommendation, the vast majority of them would never do so.

But yeah it's for real, just factor in the majority of the services and companies he using to do all the aspects of the deal, he owns or at least part of them so he's making money all the way around.

Any major pitfalls or danger I should be aware of?

There is money to be made in commercial, but it can also be a major cash drain.In Central PA, there are empty commercial properties EVERYWHERE.

Model lease backs can be a good deal in an appreciating market.One major issue is the strength of the builder.

I've got a property I'm looking at as a possible rehab, but after doing a walkthrough it appears as if it was either a duplex that was made into a single house, or had major additions done.

The major title companies were the first ones to have problems.