There are also several funds out there that provide high single digit yields that are low risk. 

The problem with averages is that a large number of high or low value properties can skew the figures either way.

They must be very low odds because insurance companies are in the business of making money, not paying out maximums.

Not that I don’t enjoy dealing with tenants, maintenance, lawn care, Home Depot and Lowe’s trips and tenant change overs (I recently put new carpets, kitchen floor, appliances, vanity and mirror in the bathroom and fresh paint in my upstairs unit).

We do not have a resident benefit package, and we keep our tenant fees very low.

Your estimate seems low, but even at that cost, it will not add that value.  

We mix it up with performing and non performing loans and we have some performing that are short term bridge loans as my confidence in reperforming paper is low based on the re default rate risk.One last thing to touch on, there was a comment that I am one of Marco’s henchman.

You get paid a 5% acquisition fee and regular cash flow with low risk.

now if you could get a seller to be the bank I get that you could smoke and mirror those deals.. but i would think those would be picked over low value or properties in the worst areas of town etc..   

It allows you to take advantage of a low down payment loan.