You need to consider other issues, as well:family dynamics, including potential frictionparents' views on owning this property and inheritance in general (some older people would consider setting up such trusts as wise and loving, while others could consider it equal to being buried while alive)estate planning implications if your parents have high net worthprobate implicationsyour parents' eligibility for government programs, including Medicaid long-term careexposure to creditors if one of the siblings has debtand more that I did not mentionAn attorney or a financial planner specializing in elderly issues would likely be the best source of a holistic advice

When I factor in both the 8%/door monthly fee + 1 months rent (8.3% of the monthly rent, spread out over the course of the lease year), it equals 16.3%.The other figures I am using are as follows:Purchase price: $300K - $450KClosing Costs: 5%Insurance: Varies by dealProperty Taxes: Varies by dealGross Rent: Varies by dealVacancy: 8-10%Maintenance Costs: 8-10%Capex: 5%Utilities: $0-$50/month, Varies by dealMy goals1% Rule: A consideration, but not firm2% Rule: Ha, not a chance here50% Rule: A consideration, but not firmCoC Return: 5%-8%Cash Flow: $150/ month, total building not per doorLive in one unit: Live in one unit for a year, pay myself rent for education sakeMy questions:1) Why does BP and other sources suggest only 8-10%?

I needed a hands-off approach to invest in real estate (I didn't have enough time to keep scaling up my active RE)I wanted tax advantages equal to or exceeding my single-family properties (cost seg studies etc)I wanted geographic and asset type diversification (In 2014, I had 100% of my portfolio in one market and all in SFH)I was seeking a recession-resistant asset class (Based on facts and statistics) There was (and still is) a nationwide demand for affordable housing (This is why I like value-add business models) I wanted to leverage other people’s expertise, track record and deal flow (People who have better connections and teams than I do) 

While we debate whether schools should re-open, people don’t appreciate that schools are a vital, if often overlooked, cog in our economy.

Lesson Learned: double check the tax amounts and calculate everything based on an assessed value equal to your sale price(or more) .

I think you can make an equally good case that prices go higher even with this half baked economy.  

Part of these withholdings is John's share of his Social Security taxes, aka FICA taxes, equal to about 6%.Under President Trump's executive order, for the next 4 months, Sept-Dec of our troubled year of 2020, John can postpone paying this 6% tax.

By saving $1000 a month in a duplex x 12 months X 2 years equals $24,000 to help you buy your next duplex!  

If you have experience, decent FICO, the property's purchase price is equal to or below the appraised value, then you might have more financing success. 

Don't skimp or skip on the contractor parts of these books - they are vital to your project being successful!