They do all the property management, making it a totally passive investment for you.They will make their number look good because the expense will be very low.

It also is dependent on what typical legal costs are, and total number of units in the pool.

You now have about $12K invested in the property, if you include closing costs on the loan.You rent the place for $1050/month, and assuming an 8.5% vacancy rate (a month a year) and expenses of 40% of net income (a little low, but okay since you just rehabbed), you should see the following returns:- $40,000 in total equity created from the property ($120K valuation minus $80K loan)- Year 1 Cash flow: $862- Year 1 Equity Accrual from Payments: $894- Cash-on-Cash Return: 7.43% (not including equity generated by rehab)- Total Return: 15.14% (not incl. rehab equity or tax benefits, which are investor dependent)- Total Return Including Equity Generated by Rehab: 347%If you choose to keep the property for longer than a year, your total return will obviously drop, but you're still receiving nearly $1000 a year in cash flow, $1000 a year in equity, and still have $40K in equity generated by the rehab.Rinse and repeat...

Make sure that you have several steps in your letter process....such as mailing the same list a total of 7 times every 30-60 days.

Off to packing bags in the supermarket so I can save enough to get a property, lol.

It's the evil mortgage brokers going down over what 100 M in total fraud.

- How does additional leverage help your total return?

That makes the total price about $85,000.

I was totally prepared to spray paint my upper body "o'connor in 08'", and not wear a shirt until election day.

I've heard people tell me you should use a buyers agent because it's "free" they take a split from the total commisions paid by the seller.