(Likely resale value on this second duplex is $110)Downside: more financing = more exposure to risk (the loan is 20 yr, first 5 years fixed, then floating.) downside is less cash flow because more goes to debt service.

I have found LA County to be too pricey for cash flow in a buy and hold, although we did one flip there and it worked out great.

If you think it'll slow or depreciate in value then pay down or even sell.In the end, your goal should be to conservatively get to an attainable number (whether its net worth or monthly net cash flow).

After buying - by chance - a 'high cash-flow' apartment as first property in Malta, my husband and I realised that Real Estate Investing could help us reach our goals: financial, geographical & time freedom.We are already working online, allowing us to travel frequently for long periods of time.

@Matt MotilYour rental metrics are good for cash flow nicely done! 

Must read list:Brandon turner the book on rental propertiesThe millionaire real estate investor by Gary Keller Investing in real estate by Gary eldredwhat every real estate investor needs to know about cash flow by frank GallineliRead all of them, in no particular order.

As of right now, cash flow driven properties are my priority but would like to start flipping as I develop contacts in the area.  

How is the cash flow from the Bahamas completely tax free?

This deal looks like either a no cash flow deal or possibly a negative (because I don't think you will get 4% loan on an investment property).  

Josh, it doesn't sound like this will cash flow well as a buy and hold.