For Example:  All Blue houses make more money.Lots of times, I tell people not to trust me, since my topics can be vetted, plus I don't know their personal situations.Just surprised that people on the Forum don't have more Podcast visits referenced in their bylines. 

If you just take the 13,835 financed at 6% you are adding 83 dollars a month. so a double whammy.Now, lets consider if rates drop to 5.5% in 24 months (not a prediction just a what if) and you could have refinanced at a much lower costs then the above scenario in what you paid in pre-paid and additional interest. on the other hand, if rates for your same scenario after your 5 year payback period is 9, then you will have an asset with a much lower then current market rent.  

I have done some deals that barely have a little positive cash flow in neighborhoods that I know very well and know that the house should appreciate well and that I will have no problem always finding great tenants.Hope all this helps.

Even if you have a higher return in the stock market, you'd be doing it with a lower basis after tax and it will take a long while to recoup from that. 

It has been on the rental market for about 55 days and the average in the area is supposedly 36.

This year I may see if if I can get a construction loan to build 20-30 apartments, then refinance with an asset based lender. what markets?

Our focus is on mid market 50-100 unit's but happy to help.

When you charge under market rent, the IRS deems that you do not have a profit motive and, therefore, disallows all rental expenses. 

Quote from @Tyler Garza: Deal :Duplex Home2 beds / unit2 baths / unit3,000 sqftAsking 300k60k downEst rent/yr - 31,2005% Vacancy20% Op ExpenseMortgage 240k assuming 7%Results: CF - 6,600Cocr - 11%Cap - 8%Looking at this for a buy and hold and trying to determine if I am analyzing this right@Tyler Garza I can get to your COC of 11% and cap rate of 8%, but since I don't know your loan payment or amort, I'm not sure how you got to CF of $6,600 - I'm getting arond $4,600.And a couple of things jump out at me with your assumptions versus most of my CFO clients: 1) a 5% vacancy rate and 20% Op exp margin seem a little low, 2) an LTV of 80% LTV (with a 7% interest rate) seems high unless you're house hacking, 3) Depending on the location of the property, the $1,300/month/unit rent may be low.

I first started out in Real Estate by house hacking in college.