A grand negative cash flow is not the issue.

The cash on cash return is only meaningful when you evaluate it based on your long term plans.

My goal is to rent it out to start generating some cash flow.I’m planning to remodel the kitchen soon, and once that’s done, I’d like to move out to make the apartment available for renters.

Without any cash it is unlikely unless you can find a 100% seller financed deal (they do exist, I just did one a few months ago).

., turning a residential property into a commercial property)-Temporary Structures-Non-Residential Buildings (e.g., barns, stables)FHA 203(k)Minimum Down Payment: 3.5%Minimum Credit Score: 620Minimum Loan Amount: $50,000Maximum Loan Amount: $524,225Occupancy Types: Primary Residence ONLYUnit Maximum: 4 UnitsAcceptable Renovations:-Structural Improvements/Reconstruction (e.g., adding rooms, bathrooms)-Cosmetic Enhancements-Eliminate Health and Safety Hazards-Energy Efficiency Improvements-Major Landscaping (e.g., grading, tree removal, adding walkways)Non-Acceptable Renovations:-Luxury Items-Commercial Use-Temporary Structures-Non-Residential BuildingsBoth of these renovation loans are similar in many ways, but the key differences are:1.

A number of the top REITS have found a technique that lets the investor initially 1031 into a DST on a temporary basis and after 2 years the REIT absorbs the DST and the investor receives the equivalent of shares in the REIT which makes the investment liquid.

How did you achieve this type of cash flow?

The monthly payments are great, but the issue I am running into is what to do with idle cash.

Cash flow keeps the lights on but appreciation is what will make ya rich. 

What you have calculated is not cash on cash return.