Or sell the pretty pictures in the brochures -- not sure how he's doing it, but he's showing those new houses on his FB page on a pretty regular basis.I was also surprised to learn from some BP friends over in Beaumont that they are getting higher returns on their rentals than we are. 

They helped us purchase 4 rentals in DFW and 4 in Houston, they make it very easy to be very hands off and still get great returns. 

I understand that leverage means more risk but at the same time more return on investment.

I actually think certain types can be decent investments IF you do the homework and read the docs and know what you're buying into.I personally avoid high rises (too much cap ex and high maintenance costs mean poor return), poorly maintained buildings with lots of deferred maintenance, avoid non-warrantable buildings or complexes (hard to finance), I prefer townhouses or 4plex style condos with only one common wall and nobody above or below, that limits neighbor and tenant drama. 

I dont think you provided total cost, but if we assume $200k, then the ROI would be:$19,200 / $200,000 = 9.6%Personally, I think cash-on-cash is good to judge making personal investment decisions as it provides you your REAL out-of-pocket returns. 

If cash has a opportunity investment value of 10% and you have a fully paid for 200K property the first $1666 of your rental income goes directly toward a return on your equity.

If your "friend" is willing to buy the note at par, then why don't you give him a note and mortgage in return for paying off your existing mortgage... 

It took a ton of extra work to return the property to it's original color.

We are utilizing a number of different mediums in our business currently, I was just curious to see what others are doing at the moment and what the returns are. 

You'll get many returns on that investment...the people here are great!