On Page 134, he lists the following when analyzing a deal:Sales Price: $132,490.00Sales Expenses: $17,000.00Loan Balance: $55,004.72Total Invested Capital: $35,950.00Profit: $24,535.28I agree with his thought process here when he calculates net profit, but I'm trying to verify the net profit by adding up all the sources of income over the past five years in his example by doing the following:Appreciation over five years=$12,490 (see chart on Page 133).Cash flow ($297.73x12x5)=$17,863.80 over five years.Loan paydown: ($60,000-55,004.72)=$4,995.28 over five years.Sales Expenses are still $17,000.Doing the math, profit= $12,490+$17,863.80+$4,995.28-$17,000=$18,349.08There is a $6,186.20 difference from the net profit he calculates.My question is: Is this $6,186.20 difference due to the forced appreciation gained in the property from the rehab he does in this example?

Looks to be pretty solid according to AirDNA.

We financed the project using other people's money, leveraging a combination of hard money lenders and private money lenders.

I want to buy and rent it @1700/month.

His plan is to demolish both and put in a development complex.

The money is "tied in" (you can't get it out if you need it) for the length of time for the project.

An LLC requires time and money to create and maintain, every year. 

I have liquid funds ready, but I want to make sure this is worth my time compared to the 5-6% cap rates I've seen on multifamily units in South Florida, which are close to what I already get from CDs and high-yield savings accounts without the hassle of property management.I'm also hesitant to invest out of state since I'm new to real estate and don’t want to make a costly mistake.

I'm really excited to be part of this group and learn from all of you.My mentor always said If you want to fly, hang out with eagles, not turkeys.I'm here to learn, network, and start building my own investment portfolio.

What you all think when it comes to use deal machine?