I've been in the Real Estate business here in Chicago for about 30 yrs. now..

Live in Las Vegas 40 yrs.

Inputs Home Parameters Purchase Price $675,000.00   Improvements $0.00   Closing Costs $20,250.00       Finance Details   Downpayment $25,000.00   Finance Amt $670,250.00   Intereste Rate 4.15%   Mortgage Term (Yrs) 30   Mortgage Payment $3,258   Mortgage Cost $1,172,919       Monthly Incomes Unit Type Rent 1 1+1 $875 2 1+1 $900 3 1+1 $925 4 2+1 $1,230 Total Rental Income $3,930 Total Extra Income $0 Vacancy Rate 10% -$393 Total Revenue $3,537 Yearly Total $42,444     Monthly Expenses Property Taxes 3500 $292 Insurance 0.50% $281 PMI (FHA Only) 0.50% $281 Maintenance Monthly $200 Management 10.00% $393 Landscaping Monthly $100 Utilities Monthly $100 Other Monthly $0 CapEx 5.00% $196.50 Total Expenses $1,844 Yearly Total $22,124Final numbers: Metrics - Monthly Yearly Net Operating Income $1,975 $23,695 Cap Rate - 3.51% Cash Flow -$1,565 -$18,777.29 ROI - -75.11% COC - -75.11%Keep in mind ROI and COC are the same because I assumed an FHA loan and therefore my downpayment rolls all closing costs and other fees into the loan.Keywords: Los Angeles, California, Rental Property, Analysis

@Jacob Ramsey Given that you are going to be in Austin for at least the next 3 yrs, it would make good sense to buy a 3-4 plex using FHA 3.5% down (Save your VA for a more expensive area).

The reason we are interested in this region is because we have lived here for around 4 yrs (before we moved) and we know that its tenant friendly.

I got my license 2 yrs ago ;)

So it would be another story for a Walgreens 20 yrs remaining on the lease.But I think without escalation in rental,  property's price can only go downward during the initial lease term, and if the tenant goes dark after 20 yrs, maybe you can't find another tenant who can pay as much rent as Walgreens paid.Maybe multi-tenants commercial is another direction?

Hi BPI've been an agent about 1.5 months now.Quick background: I'm a small buy/hold investor for 12 yrs, got my license bc I'm always looking.And others has asked me to do flip projects for them.Anyways, I have been working purely with investor.As an agent, that is not a good strategy, but I can't help it, its my passion and we don't need the income to eat.

Net income=$4,471 or $53652 for 1st year.ROI on 300K down = 17.9%These homes were bought for $125k 5 yrs ago.

. $140 per lot Total. 10,975/mn Possible potential. 12,900/mn (add the 6 empty lots and up the lot rent to 175) lot rent hasn't been raised in 5 yrs!