However, he was responsible for showing apartments, handling all repair issues, seeing that rents were paid on time, keeping the outside areas and hallways clean, etc..Because he was always "on call" 24/7 (and my mom was expected to help out with the cleaning) he was given the basement apartment to live in rent free in exchange for a small salary (which is why he managed three buildings; one would not generate enough income for the family).Perhaps your applicant doesn't want to live in one of the properties he manages.Gail

What would one recommend investing in a Major downtown, metropolitan area, like downtown LA or SD for generating positive cash flow?

The property was initially purchased at $200K back in 2008.

Can they get 20% or moreSo many houses to flip with cash which pay much more than that My loans generate well over 12%.

Looking at the numbers CAPEX and repairs add a huge amount to the monthly expenses.For instance, this third deal:Monthly Income: $1,100Monthly Expenses $1,134.14Monthly Cashflow: -$34.14Pro Forma Cap: 5.22%NOI: $5,215Total Cash Needed: $11,050Cash on Cash ROI: -3.71%Purchase Cap Rate: $5.73Sale Price: $91,000Closing Costs: $2,500Renovation Costs: $4,550 (5%)TOTAL PROJECT COSTS: $98,050Down Payment: $4,550 (5%)Loan Amount: $87,314.5Loan Points: $864.5 (1%)Amortized: 30 yearsInterest Rate: 5%P&I: 468.72Total Cash Needed: $11,050Property Taxes: $2,184/yr2% Rule: 1.13%Initial Equity: $12,685.50Gross Rent Multiplier: 6.89Debt Coverage Ratio: 0.93Expense Increase: 4%/yrIncome Increase: 5%/yrProperty Value Increase: 4%/yrCash on Cash ROI: YR1 (-3.71%) YR2 (-0.63%) YR5 (2.64%) YR10 (9.76%) YR15 (31.56%)Annualized Total Return: YR1 (2.48%) YR2 (22.27%) YR5 (26.37%) YR10 (26.47%) YR15 (22.20%)Total Profit if sold: YR1 ($274) YR2 ($5,469) YR5 ($11,251) YR10 ($24,701) YR15 ($70,982)Expenses:HOA: $82Insurance: $66Taxes: $182MTG: $468.72 (@5%)TOTAL: $798.72Vacancy: $110 (10%)CAPEX: $190/mo (~2.5%)Repairs & Maint: $380/mo (5%)TOTAL EXPENSES: $1,478.72These expenses are different than the $1,134.14 mentioned early on.

One idea may be to flip one to generate cash and then re-invest your cash into a rental property.

. $1.8Mil AV FMV Purchase for $650K and Seller willing to work with us.Clearly, the property value shows a deal, however, If not for the high income generation per unit, Our Model yields We doubt that buyers are lining up.

You're just testing for how they do after the initial "pitch".

I think we would be interested and willing to have someone we paid a nominal fee each year just to be able to answer a call or a couple of emails.Maybe do an initial consultation and/ or an annual checkup and onboarding to get us set up properly in terms of entities etc. ie does it make sense to create an llc.maybe have an packet available to answer basic questions like dos and donts of fair housing, evictions, Collections, recent law changes,the setup and use of an llc, trusts, wills etcThat way we are initially doing things properly and have built a relationship before we have larger engagements or are paying thousands due to initial poor planning.

We put a $200 initial penalty plus $10 per day for pet violations.