I fully agree- most of my purchases are ~$10k with basic upgrades like new carpet and paint making up the remaining $5k...the key is to know the streets so you know the area, then snag the wheat from the chaff at excellent prices.

For me, real estate is a retirement vehicle, a diversification strategy, and a hedge against inflation.

The initial financing will be commercial money.The proceeds from the sale of the the first property, will just about pay the other 3 property's mortgage balance, 80-90%.The remaining 3 property's are of equal value, and may be divided up between the 3 partners.

Even a property that only breaks even, if it is in a good area will usually go up in value yearly, rents will gradually increase due to inflation, and eventually your mortgage will get paid off and your income will climb rapidly.I bought a house 6 or 7 years ago I lost about $50 a month on.

At this point the owner can either negotiate a new lease with the tenant or re-tenant the building.A lease with 10 years remaining with no options doesn't seem right.

In every case, a purchase agreement was included because it set forth every contingency which had to be satisfied before the TB occupied the property, Furthermore, an escrow was opened and remained open until the option contract was executed.

I remain & thank you

@Jon KlausThe number is a moving target, moving over time, experience, inflation, the economy and age of the investor.When I started the goal was to supplement a retirement long in the future.

I'd say a deal like this should have 10% of the sale price as the down payment and the front-end loaded note can be made so that is attained and then fall into the remaining amortized period.Sell the property for what it's worth, 8% is sufficient consideration, use the amortized period to provide you wanted monthly income, you could require a higher payment to principal to increase the down payment over time as long as they can really afford it, and affording should be determined by debt-income ratios not by an opinion, especially with any inclination of getting in their pocket from any personal issue.Good luck on your getting your RE license, as you go through that process you'll see the ethical aspects of dealing in RE and what I've said here will become clearer. :)

I sure wouldn't suggest a year of free rent for any term of lease unless the company/person was strong to sue and get the award for the remaining term.What is it zoned for?