I like to hold 1960-1980 built CBS. simply because they are gonna yield so much more return than those newer properties. you like the stable and I like as higher return as possible in short amount of time. 

That aside I would like to see 8-10 percent return on anything I buy.

Of course, you can just pay cash for construction expenses, but this will need more initial investment and you'll have lower return on your cash. 

That will help you understand if it is worth it and what your actual return on this project is.

He also borrowed cash from me which he returned after a few days to a week. 

If you want to buy a property, absolutely get a preapproval, a Real one.....where you have to submit tax returns, w-2's, bank statements, etc.You don't really know what ou can buy until you get one.  

While it has been relatively good in terms of rates of returns, the markets have been red hot and finding the same type of good cash flowing deals has been difficult for now. 

@Vincent PlantIt sounds like your cash flow is slightly less: consider setting aside 10% of the rent for repairs (paint, carpet, plumbing, etc.) and 10% for capital improvements (new roof, new HVAC).Consider paying any debt with high-interest rates (anything greater than your cash on cash return).Save the balance for your next deal.Good luck,

Typically I look for a businessman who has good income monthly but shows little income on their tax return because of tax write offs or someone who has great income but has bad credit that is "excusable". ie: Medical problems, previous job loss, auto accident, that kind of thing.

It also ends up costing quite a bit to maintain the LLC, and this hurts your returns on a lot of these smaller investments.