Here are the stats:Purchase Price: $40,000 - Appraisal: $34,000 - Down Payment: $12,800Current Rent: $600 & $475 = Total of $1075/moVacancy Factor: 1 month ea unit (-$90/mo)Mortgage: $180/mo (Only $27,200 based on appraisal)Property Taxes: $65/mo ($800/yr)Management: $65/mo (6%)Gas & Electric: $0 (Tenants Pay)Insurance:  $55/moWater/Sewer: $70/moMaintenance: $80/moReplacement Costs: $105/moTOTAL INCOME: $985  TOTAL EXPENSES: $620  CASH FLOW: $365/moClosing Costs: $700Return on Investment $365 x 12 / $12,800 + $700 = 32.4% ROIInstant Net Worth Loss of $6,000The appraisal is fairly low as there are a lot of cheaper single family houses in the area and this is technically only a 2 bedroom house.

The only time I really checked out real estate prices was in Oslo, and I was surprised to see that they actually seemed cheaper than in San Francisco, though I know I didn't have any insight into the taxation of property in Norway.

@Darrin Carey touched on a great point that I wanted to make: Getting your Real Estate License will not necessarily make you a better/smarter/faster/cheaper investor - the two skill sets are completely different.As an agent, you'll learn the concept of agency (representing the interests of another party in a transaction) and the associated laws in your state, and you'll learn the inner workings of the "closed ecosystem" that is the MLS.

I do know private lenders that would love 8 to 10% because they are getting 1% in a bank.Private money is cheaper because I find HML lenders are not really direct lenders with their own cash.

Just wondering if I need to save like $50,000, or if there is a cheaper/easier way to aquire an apartment building.  

When we were looking in Anne Arundel and surrounding areas, we looked for over a year for a single family detached home before we just settled on a cheaper condo as it became the easiest choice with less risk.  

Your job is to turn the property around and then buy the property down the road for a cheaper price.Good luck!

You can find cheaper but, you get what you pay for. 

having trouble decide weather to invest in an apartment or a house.apartments are cheaper but will have to pay management fee and the property price will not rise much i am led to believe.house are more expensive and require more work running them however have the potential to rise in value thoughts please?

With economies outside the US slowing, exports getting more expensive in their destination currencies and ever cheaper (in exchange rate) outsourcing costs it’s hard to see how we’re going to generate much wage growth and/or inflation that would spur the Fed to raise rates materially.