I usually find that new members who come on site to ask about a particular company with no other interest in getting involved are here to promote that company.

Well my friend did the deal with a regular bank.

I agree with Charles, sending out lots of offers is just silly (although that's what some of the so-called gurus promote).

I am not sure if anyone is familiar with tax laws here but will I just pay tax on that $50k as if it was regular income?

You just have to monitor them on a regular basis.

Does the 45-50% include a sinking fund that is funded regularly out of rents to pay for future capital expenditures?

It is a small bar but has plenty of regulars.

Just get a regular mortgage if you can at a low rate.

From what little I know (and that is ALL I know in this area), I can't imagine how a place will cash flow given the numbers you supplied even with a large downpayment or do better than a regular MMF.

ctrentalguy,You can't possibly know an exact dollar figure for evictions, legal costs, damage, lawsuits, and many more of the expenses, but they do exist; do occur with regularity; and they are significant.