. $1,500 first year) = $2,775$2,775/3 = $925/$3,791.66 = 24.4% Cash on Cash Return for my buddies and a little bit better for myself (not taking into account our time invested, which as I said before will be just as accurately identified as experience)It is not much, but we all wanted to do something and we thought this would be a good learning experience and a safe test to try Single Family rentals.

I’m worried that, as a beginner, if I screw up I might find myself in a real pickle if using a more risky financing vehicle.OR maybe play it safe until we get our feet wet and then look at expanding into other finance options later?

That makes me proud and happy to be a part of my city’s revitalization, however small my part may be.My Pros and Cons:3 Pros:Price points are low even as the city's economy is growing in many sectorsROR (12%-18%)Lots of solid brick, historic and craftsman buildings3 Cons:Hot, muggy summers and cold icy, wintersYou need to know the city to be sure you're investing in a safe area; two blocks one way can be completely differentRacial tensions; one of the most segregated cities in the USAs real estate investors I think we must be business people and also dreamers, whether the dream is about the impact we want to have on our community or our own lives.

I also know that they have some robo cop looking device he will wear when he is walking around.I will get you the info.AC

Total Expenses: $8,734NOI: $17,380Vacancy Rate: 6% (agent said to use 10% to be safe for this market)My calculationsIncome: $26,352 (@ $549/unit)Expense: $15,811.20NOI: $10,540Comparable properties in the area rent for $500-800 in the area, water and/or other utilities seem to be included in some combination in most other rentals locally.And I looked up the assessment/tax info again (appears to be listed per unit with county)Assessed value: $32,147 per unit x 4 = $128,588 totalNet tax: $642 x4 units $2568We are seeing the properties today so I'm hoping to verify some of the actual numbers.

Regarding depreciation - it will depend on if the units were "in service" at the time of the rehab.There is regular depreciation, bonus depreciation and potential immediate write off with some safe harbor.If you did the tax returns yourself, you may want your future accountant to review your prior year tax returns.

At the end of it all, I just try to leave a safe enough profit margin to smooth out any errors I may have made in the evaluation. 

But I do not want to speculate on what I would be able to sell it for just yet, and I want to make sure my numbers are safe for my ultimate goal of buy and holds.

Based on using 800 rent to be safe and 50% total costs annually.

You have to do the hard things.You have to make the call you’re afraid to make.You have to get up earlier than you want to get up.You have to give more than you get in return right away.You have to care more about others than they care about you.You have to fight when you are already injured, bloody, and sore.You have to feel unsure and insecure when playing it safe seems smarter.You have to lead when no one else is following you yet.You have to invest in yourself even though no one else is.You have to look like a fool while you’re looking for answers you don’t have.You have to grind out the details when it’s easier to shrug them off.You have to deliver results when making excuses is an option.You have to search for your own explanations even when you’re told to accept the “facts.”You have to make mistakes and look like an idiot.You have to try and fail and try again.You have to run faster even though you’re out of breath.You have to be kind to people who have been cruel to you.You have to meet deadlines that are unreasonable and deliver results that are unparalleled.You have to be accountable for your actions even when things go wrong.You have to keep moving towards where you want to be no matter what’s in front of you.Source: http://www.businessinsider.com/hard-things-you-need-to-do-to-be-successful-2014-1