She was a single lady who became intimidated by the inspection, which revealed it could use maintenance in the future.

Ultimate Goal: 10 million in equities with annual passive income of ~ $ 500, 000 so that I can do academic medicineShort Term Goal: Buy a quadruplex within next two years

Purchase Price: $174,900Mortgage: $838.89 with 20% down @ 6% and 5% closingCash Outlay: $43,725-Income-Rent: $1900/month (optimistically)-Expenses-Maintenance: $190/monthVacancy: $190/monthProperty Manager: $0 (self PMed)Insurance: $115/monthTaxes: $510/month (ouch)NOI: $16,860CoC: 1.54%CAP: 12.52%Profit: $27.99/door/monthI would have to offer $130,000 on this property to make $200/door/month.

You posted no details other than an 8% return from holding RE and claim t is lower risk than my suggestion through your arguments.I never stated that the higher returns were derived from or promised by "prophets".While I agree that typically, higher returns usually come with higher risk, a smart investor can achieve both double digit annual returns and low risk via note/trust deed investing.I also agree that understanding risks is important as they relate to returns.

Well I have the 401k, plus a separate IRA (that has its own limits for annual deposits and income) as well as a few checking/savings accounts as backup/immediate funds.I guess I'm just someone who sees how much there is to know out there, and I want to know it all.

That is over 20% annualized... pretty good.

Take a trip over to the HOA management office and ask for a copy of the budget also, look up the HOA at the corporation commission's website, they may be required to publish budgets with their annual report.

A more precise way of explaining what I'm saying is that you should always invest cash in whatever investment you can find that yields the highest returns.Paying cash towards your mortgage is financially identical to investing in a zero-risk investment that has an annualized ROI equal to your mortgage rate.

Maybe I am missing something.The way I've seen it calculated is 50% of the rent goes to maintenance and the rest goes to the mortgage(minus taxes/ins).Taxes an insurance could be pretty substantial when doing the numbers.

I can see where I could do a letter of intent saying if you rent at this amount and never miss a payment, keep the place in good condition (not maintenance) at the end of five years you may buy the MH at it's book salvage value of five hundred dollars.