This unit will be 100% cash flow since the upstairs 3 bed 2 bath unit already pays for all property expenses.

If the total renovation cost was $130k your "cash on cash" return for your renovation funds would be ~13% ($16,800/$130,000).

Purchase price: $194,500 Cash invested: $51,000 When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation.

We are planning to start our first few properties with cash so we don't get burned on hard money interest payments since it will be after work and weekends we are working on the project.

If it will cost you considerably more in the future and loss of appreciation, lose of tax writeoffs and lose of cash flow in the meanwhile, than the amount of debt you are paying off, how does that put you ahead? 

Tenant paid their rent in cash because they don't have a car right now. 

This can be a major cash-flowing asset for you & your family.

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provides support for the property tax appeals process.Additionally, it can help maximize renovations and improvements.A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

Purchase price: $135,000 Cash invested: $80,000Turned a 2 bedroom 2 bath house into a 7 bedroom, 4 bath house.

Purchase price: $212,500 Cash invested: $50,000 When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation.