Also if your familiar with Atlantic coast real estate Caralinas do get some pretty nasty storms how ever I know the risk is lower then say The Keys in Florida

Fix and Flip: most risky, especially for a virgin.Fix and rent: my favorite.

I am ok to make less money on a few because I think my risk is lower.

Here's what I came up with.Price: 390000Downpayment (3.5%): 13650Closing Costs: 3000Total cash invested: 16650Gross Income: 40080Less expenses: 20040NOI: 20040Less debt service (30 yrs at 3.5%): 20280Cash flow: -240/yr (-1.44% COC)When you include the mortgage paydown - 7223 the first year - the total return becomes 6983, or 41.9%, though with that cash being inaccessible, this a VERY long term proposition when talking about that return.All of that said, there are some things working in your favor here.1) Your property taxes are very low compared to many other parts of the country.2) It's a new construction - so while there will still be capital expenses, some of the big ticket items such as roof, AC, hot water heater and such are unlikely to need replacing for some time.3) You are managing the property yourself*.With all of that in mind, you could probably assume 40% for expenses fairly safely.

Of course the risk is the season of vacancy.

Feels risky just posting this here but someone should get it if it is a good deal.

Without cash reserves you are moving into a very risky deal.

Hard money will not come anything close to the conventional financing you found, especially since this would be considered a very risky loan to a first timer.

It's risky and just about every other method is better BUT if the deal is juicy and the numbers are true then I ask why not?

The risk is that if things go badly (you MUST assume things will go badly and make plans accordingly), then relative ends up suing you.