I am no where near that in passive income, I have exceeded that in gross income, but that is entirely different, not even sure if I show a net profit at that hehe.

It could be that your cousing is able to recoup management and administrative fees.In general, 5% of gross receipts on a NNN lease seems high to me, specially if accounting is done by an outside CPA firm.

The owner said he only bought it to house his employees for a long-term job, I'm still waiting for the 411 on that.

If that's the case the tenant pool will be the same and you will be stuck because no decent tenant will want to live around those buildings no matter how nice you make yours.A bad tenant is like having a bad employee at a job.

.), which is close to their initial investment in 2004.Total Monthly expense $607Place Lease with option tenant, $4500 option to purchase for $80,000 in 2-3 years, monthly lease $850So if tenant exercises the option on month 36 this is what the numbers would look like:36 months of existing mortgage = 11988, 11 months remain =366336 months of seller carry= 9828 , remaining balance =30172Total remaining balance to seller= 33835Selling price to option tenant= 80,000 – balance = $46,165Cash flow arbitrage $850 - $607 = $243 X 36 months = $8424Option fee $4500Total gross profit = $59,089What did I forget, and is this a possibility?

A rent ready house should gross atleast 1% of purchase price in rents.

It would also be fair to discuss the costs associated with the compliance burden, both in dollars and in employee time, but be sure to limit those comments to new rules and not ones you are suppose to have been in compliance with for years.It would also be fair to complain that your small lending operation that uses your own money (that would include money you borrowed) rather than federal money or insured deposits to make loans with is required to meet the same "safety" standards of a Freddie or Fannie loan.

Your total debt payments should be no more than 40% of gross income.

The employees in the office are buying up rental properties for themselves.

Example - Investor is full time employee of a manufacturing company and earns salary plus bonus.