Also, $100K is 33% of $300K. 33% in 5 years is no great shakes, less than 6%/year, the stock market will beat that in most 5 year periods.Also, you still haven't covered vacancies, repairs, maintenance, management or any of the "gotchas" that typically will run up your true cost of ownership.

Based on my cash flow calculator, the current rent should cover expenses plus a little (taxes, insurance, maintenance reserve, etc.)

I want to buy with cash and keep the home, so no monthly mortgage to pay other than the semi-annual property tax.

Some will have lending libraries where you can borrow courses for no charge (after the annual membership fee).You can read BP and other sites.

Do you do all the maintenance, or put some or all of it on the tenant buyer?

Maintenance @ 5%: $696 Taxes: $527 Insurance: $500 Utility Expenses: $2,951 Total Expenses: $4,674 Net Operating Income: $6,460 Debt Service: $4,126 Pre-Tax Cash Flow: $2,334 Expenses/Unit: $1,558.00 Unit #1SF: 660Avg.

You may not have noticed yet because maybe you're managing it yourself (earning the property management fee of about $75/month) and doing maintenance yourself and avoiding (so far) big sporadic expenses like paying for a new roof or fixing the damage after an eviction.If you refi to 30 years on the $58K, you could get the payment down to about $385, making it only a little worse than break even.

I drive around and look for the places that are falling apart or have significant deferred maintenance.

Correct.You also have to pay the CA Franchise Tax Board an annual fee to do business as an LLC in the state.Originally posted by "loki005":3.

In addition, the annual OREIA convention is being held October 25-28 in Columbus.