as a seller, never accept any kind of promissory note, unless it is backed by real property.

They can give you all kinds of details about the property that will help you decide if the thing is going to fall apart the first month.

You're the second person today to speak to me about mortgagemoney for what amounts to a commercial loan -- it's a singlefamily residence, but for commercial purposes.You would need to find someone in NY who can write that kind ofa loan.

We also have a building across the way filled with the worst kind of tenant offenders - parolees, ex-cons, drug users, layabouts and bums, you name it.

I don't think the question was about the investment as much as the analysis process.When I run a projection like this, I like to make it kind of a "what to expect in the first year" scenario.I also include projected tax benefits, equity buildup (amount of principle paid) and somtime include some estimation of appreciation.So, using your numbers (and a couple of my own assumptions), this is what I get:Your Assumptions:Purchase Price $250,000.00Down Payment $50,000.00Loan Term 30 yearsLoan Rate 7.80%Yearly Income $33,495.00Yearly Expenses $11,412.00My assumptions:Property Appreciation3.00%Buyer's Tax Bracket30.00%Depreciation- Land 20.00% Building 65.00% over 27.5 years Personal Property 15.00% over 5 years1st Year Benefits:Cash Flow$33,495.00Income-$11,412.00Expenses=$22,083.00Net Operating Income $1,439.74Monthly Payment*12Months=$17,276.89Debt Service $22,083.00Net Operating Income-$17,276.89Debt Service=$4,806.11Cash FlowTax Shelter$22,083.00Net Operating Income-$5,909.09Building Depreciation-$7,500.00Personal Property Depreciation-$15,538.73Interest Paid$-6,864.82Taxable Income / Loss $-6,864.82Taxable Income / Loss*30.00%Tax Bracket $2,059.45Total Tax Effect (You save this much in the first year on your taxes...)EquityIn the first year's payemts, $1,738.16 of principle will be paid.AppreciationA property worth $250,000.00 whose value increases by 3.00% per yer will increase in value by $7,500.00 in the first year.Total BenefitCash Flow + Shelter + Equity Increase + Appreciation = $16,103.7132.21% return on down paymentIf you don't like to include Appreciation, then you getCash Flow + Shelter + Equity Increase = $8,603.7117.21% return on down payment

If you are the kind of person that has enough money to buy a 6 unit residential building then you probably don't want to LIVE there.

Brokers look everywhere to find good deals and you'll need someone who will look at every lender, not just the one they work for.What kind of interest rate can they get you?

Most people are not "wired" for that kind of income.

What kind of team should i put together so to speak, and why.

When calculating this don't forget that when moving most of these folks can probably find some kind of "1st month free" deal for new tenants so that's why I suggest a 10% margin between your "new" rents and your estimate of market rates.