You must be the principal in every deal you do, because under law you cannot just match a buyer and seller and walk away with money.

Perhaps you can pay off 1% of the principal to get a 1 or 2 year extension?

etc....In addition to all of that, it is not precisely clear if you will take a principal role in the purchase and sale contract or if you simply are trying to broker the deal.

If you can acquire the property at this price, your ROI should be around 15% (includes the principal paydown).

Now in my case I am the brokerage (principal broker).Define in a perfect scenario once you are licensed what you would want your business to look like.

2 bedroom / 2 bathroom, 1,320 sq ft each (2,640 total), new, all-brick, side-by-side duplexes.THE NUMBERS - TWO SCENARIOSSCENARIO 1 - Pay Asking Price, Collect Lowest Rent LikelyPurchase Price: $190,000Down payment @ 20%: $38,000 downLoan Amount: $152,000, 30 years at 6.00% (estimating here)PI: $911.32/monthGross Monthly Rent: $1,600/month (conservative estimate)Yes, I realize according to the 50% rule, I'm already cashflow negative.ExpensesTaxes: $2,119/year = $176.58/monthInsurance: $700/year = $58.33/monthVacancy: 8.74% (according to www.bestplaces.net, as of June, 2012) = $139.84/month - I think this is a bit high, as these units seem to have very little trouble getting occupied.Groundskeeping: $500 = $41.66/monthAdvertising (Craigslist, Internet, For Rent signs): $100 = $8.33/monthMaintenance/Miscellaneous: $1,000 = $83.33/monthTotal Annual Expenses (including vacancy): $6,097.48 = $508.09/monthNet Operating Income: $13,102.52/year = $1,091.87/monthLess Annual Debt Service: -$10,936/year = -$911.32/monthCashflow Before Taxes: $2,166.52/year = $180.55/monthYes, below the ideal $100-$200/month per door.Cap Rate: 6.90%Cash-on-Cash Return: 5.70%Taxable Net Income (after adding back $1,816 principal payments and amortizing over 27.5 years for $6,909): -$2,926.

Some more you're gonna see a lot:ARV = After Repair ValueDOM = Days on the MarketSFR or SFH = Single Family Residence or HouseMF or MFH = Multi Family or Multi Family HousingROI = Return on InvestmentLTV = Loan to ValueP&I = Principal and InterestCOR = Cost of RepairsREI = Real Estate InvestingREIA = Real Estate Investing AssociationHope these help!!

The other 50% is to pay the principal and interest of your loan + cash flow.

I am up 10% in appreciaton plus I had significant principal paydown.And the house I moved into?

I suppose this same principal could apply here.