That would mean my equation would look like this for a property that makes sense to buy:.91*[(R*36)/2] > (Acquisition + Rehab)So, after doing some number crunching on some real life examples (assuming 9% property management fees and the 50% rule), it would appear that dividing the rent amount by .061 I can come up with my max purchase price.

There is no risk-free way to double your money. vegas, options, futures, and pretty much everyhting so far in this thread equates to the same thing. unless you are the next next Mark Zuckerberg, focus on balancing risk with reward and you'll be able to turn the 500K into a million over a period of years.

There are a lot of missing numbers in the equation...Private loan:$40,000 at ___% interest over ___ months for a $551 monthly paymentSmall loan:$10,000 at __% interest over ___ months for a ___ monthly paymentvs.Income of the property (now) and potential income

This would help us nail down one aspect of the equation.

Management is a good thing to include even if you are doing it yourself - the additional money you earn by managing yourself is more like money you earn by doing a job than income on your investment.15 year scenario:Asking: $60000Down: $15000Financed: $45000 @4.5% over 15 yrsGross Income: $10200 (850/mo)Expenses (50% rule): $5100NOI: $5100Debt Service (PI part of PITI): $4128Cash Flow: $972 (81/mo)Cash-on-cash return: 6.48%30 year scenario:Asking: $60000Down: $15000Financed: $45000 @4.8% over 30 yrsGross Income: $10200 (850/mo)Expenses (50% rule): $5100NOI: $5100Debt Service (PI part of PITI): $2832Cash Flow: $2268 (189/mo)Cash-on-cash return: 15.12%When you add the principle paydown back into equation, the numbers even back up, however the extra money you pay in order to be done in 15 years is still only saving you 4.5% interest - something that money could beat if put towards a second property.

You have to be able to figure out a way to make it win win, where you're adding value to the equation, or what's the incentive?

(last 5 digit)Thanks.B of a hasn't ever publicly stated what they're using your soc for, and many agents just use 000-00 in equator.

Deduct out the expenses, I use 40% ($320), I am left with $250.67 / month cash flow which equates to 18.8% return on the $16K down.Of course, these numbers are never 100% accurate.

I am not considering the appreciation aspect of the equation yet, just to understand if the 2% rule better in my scenario.But for me to understand, what is the exit strategy for a Multi-family unit?

If you'd rather shift the equation to longer vacancy with lower risk, then maybe the PM will do that for you.