So $2,000 in interest shouldn't break your deal....or if it does, then it's not really a deal.  

Quickly I want to break down the 3 different types of "Real Estate Risks" through the lends of the carrier and then dive into the one most heavily focused on in this thread as well as this site. 1 Commercial Property- Lessor's Risk Only (LRO)2 Residential Home Owners 3 Habitational*When talking about investment real estate we talk about LRO's or Habitational (Hab Market).  

Other than some semi-off topic back and forth, you can see that buying a high value property that doesn't cash flow (well, more like breaks even) can be a good thing. 

What I found out is what many call the "1% Rule" which states that to BREAK EVEN, a property rent for at least 1% per month of the total "all in" costs, regardless of whether they are paid cash out of pocket or borrowed. 

That led me to my first flip and building a single family rental portfolio.Wholesaling was a great way to break into the real estate industry.

So if you have a property worth $100K with a mortgage of $80K and you're breaking even every month, your equity is $20K and your cash flow is $0.  

Move the building machinery and equipment up off the lowest floor and you’ll get a break too.

Hate to break it to you, but there is no one sized fits all answer.

If you buy one big property or two small deals that will be pretty much your break even point on your dollar costs, and if you monetize your time investment which you should, toss in a third small deal to break even. 

Everyone else on your team will be transaction-based and not really involved after a purchase.We're in the Metro Detroit area, so you may want to follow our blog here on BP, but at least read the following posts:Follow our "Deep Dive" series we're doing about Metro Detroit cities and City of Detroit Neighborhoods: https://www.biggerpockets.com/...How to “Screen a PMC Better than a Tenant”: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesIn our experience you will need to:1) Learn to "Maintain to the Neighborhood", not your personal standards2) Tenant-Proof everything you can Hard surface flooring, not carpeting (too easy to trash) Same basic paint for everything No garbage disposals for them to break Only spring-type doorstops also with plate on the wall Glue rubber mats under sinks to prevent water damage Sheet aluminum on walls around stovetops, for easy grease removal Towel racks - screw 1x3 to wall studs, then screw rack to that Install low-profile downspout ext, not aluminum that always disappear Plan on cleaning gutters and leaves up in the fall as tenants won't Avoid garage door openers3) Have a great application screening process: Check credit for evictions & convictions, utility collections Focus on employment/income stability Require bank or debit card statement - you'll be surprised what they spend their money on!