You posted the raw data, just go one layer deeper to get to % returns to confirm your purchase price in relation to your expected return/profit/cashflow:$5,500 + $3,000 = $8,500/mo or $102k/yr GOI (gross annual rent collected)Knock off 25% for expenses and you are at $71k/yr or $5.9k/mo NOI on this $1.05M investment or holding this at a 6.8% cap rateWith your 7%, 75% LTV loan, you'd be paying $5k/mo for the loan, leaving you with $900/mo or $10.8k/yr in Cashflow.Now to determine your CoC return (Cash-on-Cash), take the $10.8k in CF and divide it by your equity-in, likely ~$300k, so 3.6% return on your cash/equity in this deal.

Local laws definitely come into play as well

Are you cash flowing?

We sold for $1,218,000 cash (15 offers, 5 days on the market, and got a cash buyer that was going to live there and make it their own home for their family).

Purchase price: $252,000 Cash invested: $25,000 Brick house, 4 bedroom, 2.5 Bath How did you find this deal and how did you negotiate it?

I'm playing the same game - Roth SDIRA, although I'll prob start purchasing through an entity as well in the near future.

You can play with pricing to see how it affects demand, so you have a better idea of the quality of prospects and how many you get at different price points.You could also then modify your ad to identify a target MoveIn date and start accepting & processing applications.

The difference is that he will not be making any payments on that cash during the build. 

I have a rental property that I paid cash for about 8 months ago.

Well I have a deal under contract and I have a cash buyer.