They typically charge some fees for each transaction, as well as an annual fee.Any debt must be non-recourse.

Check this out: Loan Amount: $150,000 Annual Interest Rate: 8% Loan Period in Years: 30 Scheduled Monthly Payment: $1,100.65 Scheduled Number of Payments: 360 Total Interest Expense: $246,232.87 Rent Schedule for the next 13 years ($100 over mortgage payment plus 5% annual increase): 1 $1,200.65 2 $1,260.68 3 $1,323.71 4 $1,389.90 5 $1,459.39 6 $1,532.36 7 $1,608.98 8 $1,689.43 9 $1,773.90 10 $1,862.60 11 $1,955.73 12 $2,053.51 13 $2,156.19 If I apply every extra dollar to principal I will pay off the mortgage in 13 years or 156 payments and pay only $105,127.30 in interest expense...this is a savings of $141,105.57 in interest expense.

Taxes, insurance, utilities, lawn care, maintenance (other than your rehab).

If I wanted to raise the value I would- increase income (raise rents, vacancy)- reduce expenses (capital expenses at the time of purchase to reduce maintenance costs?)

You can take an apartment building with problems say 40% occupancy and deferred maintenance and bad tenant mix and management problems and use commercial hard money.You will have to figure in the high debt service while turning around.Once stabilized you will refinance out at the new value up to a certain LTV.Take the money and do it again.The larger the project the more the potential ARV spread after stabilized but the more risk.The larger projects take more time to turn around so the churn rate on the money is slower.What happens and I have seen this is people run out of money and the property is taking longer to stabilize than thought.Then you have some money left but not enough to take down a property yourself until you unload this other deal you bought or refi.You then start partnering with different people on different projects which can lead to a mess.You don't just want to grow out of impatience or doing more deals and then get involved with the wrong people or overt extend yourself.You want smart,well thought out,controlled portfolio growth that is highly calculated.

I agree with this 100% Buying enough SFR's to obtain $1M in annual cash flow is working very hard, I would prefer to buy 1 or 2 100 unit apartment buildings to arrive at the same income stream but less work and working smarter.

.$100,800 Potential Gross annual income ($5,040) 5% Vacancy Factor - could be more ----------- $97,760 Effective Gross Income($26,400) Taxes, Ins, Water, Sewer($ 9,576) 10% Property Management($ 9,576) 10% Maintenance($ 1,000) Misc Fees, snow removal etc.------------$49,208 Net Operating Income$49,208 @ 8% Cap Rate = $615,100$49,208 @10% Cap Rate = $490,208$49,208 @12% Cap Rate = $410,066The numbers could slightly be skewed by higher/lower vacancy factor (5% is the lowest I would ever use).

I'm not doing any rehab to these properties besides maintenance, and as of purchase no major maintenance is needed.

What I'm speaking of is more along the lines of ongoing maintenance.

The answer might be for you to not self manage but hire a different company more well suited for what you are trying to do.Managing a property is not easy.I have a manager on site and a maintenance man for my apartment buildings and I have still have to answer questions,etc.The real answer is what do you do for a job??