And if depriciable site improvements are $600K, you'll have a nice $18K+ taxable loss on about $8K positive cash flow.

Also, I'm wondering if people have thoughts about the benefit of owning the units as a block from a wholesaling perspective, or from a buy and hold position, etc.

I'm being put in a position to take on this venture or turn down the agent/friend/associate that is selling this service, that puts a strain on that relationship.

Talk to a mortgage broker and ensure that you're in a position to buy the property.This is because even if the lessee decides to buy the house, it is possible that he or she will not qualify for the mortgage loan required to make the purchase.

Thanks for your response, it solidifies my position on this property.

At that point, it becomes pretty easy to add up all of your positive cashflow, subtract off all of the negative (including commissions and sales costs) and get a net number that you can use to calculate ROI/CoC.

better question- anyone have long term success and positive returns playing the south side shuffle??

It doesn't look like they have any positions for Charleston, South Carolina.

Having said that, long-duration (6-12 month) put options, that are out of the money (the market would have to decline at least 5% for them to start generating positive $ returns) are not that expensive.

I am almost positive its his own money.