Purchase price: $61,000 Cash invested: $60,000 Sale price: $191,000 The biggest expense of this property was the nine 20 yard dumpsters, yes nine!

Unfortunately, it's more expensive today than it has been in the past, but guess what, it will be more expensive in the future the longer you wait.

All she is there for is to make sure that the rent is being paid and to be there to financially assist her son. 

So on Year 1 if you paid off the loan, the lender would hit you with 5% of the loan amount.

So if you buy a $100,000 property at a 5 cap you in theory should be making 5%, after all expenses, on an all cash purchase.

One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible.

@Yusuke Koike if damage was that extensive where the unit is not habitable, check your state/local landlord tenant laws as some just require you let them out of lease, return deposit and refund rent for any time they’ve paid that they can’t live there.

Maybe Greg only processes 4-5 applications a year and doesn't mind the expense.

I've typically paid 50-60 depending on the size of the lawns.

So the income is claimed at the top and the expenses are DEDUCTED toward the bottom.