Purchase price: $195,000 Cash invested: $55,000 Fully renovated, turnkey property that generates about $450 per month in cash flow (9-10% cash-on-cash).

Sell tax free, buy an identical property, increase the tax basis, generate the same cash flow. 

That is a sophisticated value add.If you simply buy an RE (SFR to quad) off the MLS that has no value add, you will be waiting on rent appreciation to generate cash flow.

As the site generates no income and has no rent roll. 

NOI is not calculated in ROI.ROI = Annual cashflow Div by Initial Investment16,206.77 / 181,000.00 = .0895 x 100 = 8.95% Cash on Cash Return on Investment (ROI)Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments.

What you're setting up is impressive.Here are some random thoughts that pop into my head as I read what you wrote.You're doing this full-time for three months. 

Hi there,I'm doing a deal analysis on a multi family in Chicago, based on the asking price, I estimated it will generate a negative annual cash-on-cash return, assuming 20% downpayment.

Or if your intent is to force a separate tax filing so it’s not on your personal 1040, then he needs to be involved at the very top level so that your business returns flow into the final LLC to generate a k-1 to your 1040.That’s my laymen’s two cents

Here are some generally vague thoughts on areas surrounding Hartford.Windsor is a great "small town" that generates good cashflow with moderate chances of appreciation (relative to the CT Market)Granby even a smaller town feel than Windsor, rentals are in high demand and rent prices are high.

Simple way to think of it is with the additional principle, would you rather invest it and make "x" (x being whatever return you can generate through RE, stock..etc) or use it to minimize the 3-4% interest rate that's locked.