If you consider compounding effects, it's actually closer to 6% annualized return, and this still doesn't take into account the discount rate (remember, cash in-hand today is worth more than the same amount of cash in the future).Assuming a discount rate of about 3% (what you could get in a 3-year CD at essentially no risk), the actual discounted return is about 3.2%, or less than half of the 6.6% it appears to be using simple annual percentage rate calculations.So, if the OP thinks he can get more than 3% return on the $300K, he should take the $300K now...

You've beaten that out comfortably.This is what I wanted to know, what percentage of cash return was considered good.However, it looks like the return will not be as good as originally posted.

I recently heard that Orlando has the highest # or percentage (can't remember which) of homeowners underwater on their mortgages in Florida.

As mentioned in the article only .3 (a third of 1%) of the working population make over $1,000,000 a year from their jobs.. but it seems that a much higher percentage of full time real estate investors would probably make over $1,000,000 a year if you combine cash flow, appreciation,etc.

Many Graduate students and professional students have already gotten the "party" out of them and have found a "direction" to take their life.Some early year students might be responsible but to be safe you play the percentages and build in risk.I would require heavy deposits.The 1st level landlord back will usually say anything to get rid of a bad tenant so you have to go further back.

A private lender may or may not require you to come up with a percentage of the cash for the deal -- 20% of the purchase price plus rehab costs is pretty typical.

The REO listing agent depends on volume (quantity) of transactions, because the listing side on REO does not pay out the big commission percentages.

Well, I would hope the monthly rent would be quite a bit less than 20% of the median purchase price - after all, BP is known for espousing the 2% rule, which is a factor of ten distinguishing these two percentages ...

Or, should I include a percentage of the mortgage amount toward House B?

Once you find the deal, try to work out a partnership with the investor so that instead of flipping the property to them, you will be able to keep a small percentage like 5 or 10%.I know the percentage don't sound like a lot of money but the experience that you will get will be priceless.