I hired a local handyman by father knew to 'save on repair costs' as opposed to going with one of my usual GC's.

(They might want more since RE commission costs to seller will be +/- $50k) $600k LA at 5% interest only for 5 years = $30k/year interest income X 5 years = $150k interest income. 

If they cause a sewage back up because they are flushing wet wipes and the cost of repair is $760, who is paying for it?

We purchased our primary property here in Hawaii in 2021 and have found immense benefit from the property setup which allows us to rent out our "ohana" unit (mother in law) which covers our mortgage costs.

I’m not sure that either cost anything for the buyer, but there is a big difference in cost to a vendor that sells a home.  

Tough neighborhoods still, but plenty of fixer uppers and low cost plots make it ideal for scrappy individual investors looking to get started on the cheap.

Mortgage, Taxes, Insurance, HOA: $3040.37Estimated rent: $2475Total Expenses: $3660.12Vacancy (5%): $123.75Repairs (5%): $123.75Capital Expenditures: $100Property Management (11%): $272.25Information when I bought the house in 2022, new constructions Purchase Price: $373000Purchase Closing costs: $4662Current home value: 400k-420kCash Flow: $2475-$3660.12= -$1185.12; -$71107.2 at 5 yearsCash on Cash Return on Investment (CoCROI): 0%Appretiation per year (6%); $535,290.23 at 5 yearsEquity: Loan value $345,089.53 at 5 years; $190,200.47 in equity at 5 yearsLoan Value today 6/2024: $368,201.59Total ROI in 5 years= (Total profit/Total Invested capital)/ Time (in years); Total profit: $190,200.47Total Invested: $71107.2 (neg cash flow) + $42757 (closing sale costs)= $113,864.20Total ROI (5 years)= ROI 67%, annualized ROI 10.8%My biggest concern is that I am relying solely on appreciation and assuming will appreciate at 6% per year. 

Hi @Adelaide Ning, I manage a few MTR's here in Indianapolis for for clients based out of California, this is a great market to get into based on the growth this city has seen over the last few years paired with the low cost of entry.

A lot of lenders have a seasoning period of 6 months in order to use appraised value not cost basis.

With regards to the cost to step foot into this loan I’d be paying the 5,000 she has in equity plus the difference in purchase price to sale price ?