Paying all cash will get you cash flow equal to half the rent.Cash on cash = annual cash flow / total cash investedThis can often be higher with some leverage than paying all cash.If you manage yourself, I think you can cut the 50% number down to about 36%.

Consider mortgage payments, insurance payments, maintenance costs (lawn mowing, cleaning, etc.) and multiply them by the number of months the buyer can expect to hold the property for.

I'm in the Dallas area, and you can forget getting great deals, there some some ok deals, but as the saying goes, there are more people wanting to buy then wanting to sell.You can get a 1% deal, but i don't know how in the world you have any cash flow with $1,500,in rent with $143k in the house,,,taxes along would run about $300 a month and a decent reserve for maintenance and figuring in vacancy, etc,,,

What he wants is 180k 25% down with a land contract 30 year amortization at 6% the rents are low, real low, 5 units at 520, one unit at 450, $3050 a month total, taxes are $4869, its a decent brick building with little deferred maintenance.

Still dismal results as outlined below.ROI %11.03% CAP Rate 4.04% CCR 14.14%Ask Price $64,600.00Loan $51,680.00Down20% $12,920.00Closing6% $3,100.80 (Estimated high for cushion)Reserves 6 mth $3,214.69 (PITI only)Touch Ups2% $1,292.00Property Type 3Rent / Unit 483.00 (Based on reported annual gross)PITI 535.78PM10% 144.90Expenses40% 579.60Total Expenses 1260.28Monthly Gross $1,449.00Annual Gross $17,388.00Monthly NOI $188.72Annual NOI $2,264.61Recover Funds $20,527.4991.7MonthsThank you for taking the time to read and I sincerely appreciate any guidance you might suggest.

Also common: landlords who don't address the extra maintenance required at the coast and end up with a rotten building and a bad reputation.

The association included $50,000 annually for attorney fees and used that much or more every year primarily suing fellow owners for stupid things.In all of my familiy's history, after all the real estate developments, tranactions and tax planning, we have never collectively come close to spending $50,000 spanning more than 90 years.

You will have some maintenance issues with the Corp and LLC and some can be limited with a good by-laws/operating agreement.

Monthly maintenance fee is also steep, $100 - you're locked in for a year and as I understand their primary role is as plan record keeper.

We are negotiating an annual percent of return.