I don't think the question was about the investment as much as the analysis process.When I run a projection like this, I like to make it kind of a "what to expect in the first year" scenario.I also include projected tax benefits, equity buildup (amount of principle paid) and somtime include some estimation of appreciation.So, using your numbers (and a couple of my own assumptions), this is what I get:Your Assumptions:Purchase Price $250,000.00Down Payment $50,000.00Loan Term 30 yearsLoan Rate 7.80%Yearly Income $33,495.00Yearly Expenses $11,412.00My assumptions:Property Appreciation3.00%Buyer's Tax Bracket30.00%Depreciation- Land 20.00% Building 65.00% over 27.5 years Personal Property 15.00% over 5 years1st Year Benefits:Cash Flow$33,495.00Income-$11,412.00Expenses=$22,083.00Net Operating Income $1,439.74Monthly Payment*12Months=$17,276.89Debt Service $22,083.00Net Operating Income-$17,276.89Debt Service=$4,806.11Cash FlowTax Shelter$22,083.00Net Operating Income-$5,909.09Building Depreciation-$7,500.00Personal Property Depreciation-$15,538.73Interest Paid$-6,864.82Taxable Income / Loss $-6,864.82Taxable Income / Loss*30.00%Tax Bracket $2,059.45Total Tax Effect (You save this much in the first year on your taxes...)EquityIn the first year's payemts, $1,738.16 of principle will be paid.AppreciationA property worth $250,000.00 whose value increases by 3.00% per yer will increase in value by $7,500.00 in the first year.Total BenefitCash Flow + Shelter + Equity Increase + Appreciation = $16,103.7132.21% return on down paymentIf you don't like to include Appreciation, then you getCash Flow + Shelter + Equity Increase = $8,603.7117.21% return on down payment

Just do a rough calculation (your cash X 4) to determine if you can even consider getting into commercial properties.Evaluate your cash, do a market analysis for your chosen niche in commerical real estate (gotta have tenants), and then go search interest rates.

So maybe you have to try to recoup in one fell swoop with an intro letter describing the change of ownership and market analysis and bring the rents to 85-95% of market.

With that info you can ask for references, check public records, and make a more informed decision.I would feel more comfortable if they were experienced in the following areas:Local/state laws and ordinancesBudget managementFinancial analysis/projectionsEvictions/CollectionsLeasing proceduresProperty maintenanceMarketing/Advertising for new tenantsTaking it a step further, you can even request pictures, brochures, etc.of any properties they are currently managing.

Here's the monthly analysis on the numbers you gave me on a $135,000 Purchase Price.$1,800 Rents-$233 Taxes-$151 Insurance (Estimated)-$90 Maintenance (5% of gross rents)-$180 Property Management (10% of gross rents)-$150 Vacancy Loss (1 month)-$907 Mortage payment on 30 year fixed @ 8% with 10% down$88 Positive Cash FlowThat cash flow seems way to small for something you are paying so much for at this point.

When I finally get my license and find a broker to hire me what can I expect to earn in my first year on average?

:lol:Ohh...And I finally joined this board after reading it for the last couple of months.

Is there something wrong with my analysis?

I have been looking for that "perfect" property for almost a year now and I finally found it...or so i think...this is where you help.

And THANK YOU for the very detailed analysis of the three options.