Texas stands to see a 4.4 percent gain in revenue per available room rather than the 3.5 percent that was previously forecasted.

Currently, I have a business that has been in operation for over 3 years with a good history of revenue/profit.

I wouldn't kid yourself about renting the homes instead of selling to get additional revenue in the form of renting.  

Property is in Bayshore, NYPurchase Price/Offer (Bld: $192,500.00 Lnd: $82,500.00) $ 275,000Down Payment $ 13,750Mortgage $ 261,250Interest Rate 4.25%Monthly Payment $ 1,286Closing Costs $ 13,750Repairs $ 5,000 (probably doesn't need repairs)Total Initial Investment $ 32,500 Estimated IncomeRent $43,200 (2 units at $1,800/mo each)Vacancy $(2,160) (5%)Net Revenue $41,040Estimated ExpensesProperty Taxes $8,694Property Insurance $1,200Management $4,320 (10%)Repairs and Maintenance $3,024 (7%)CAPEX $3,456 (8$)Utilities $-Accounting and Legal $-Advertising $-Lawn and Grounds Keeping $- ..... all paid by tenant (Thinking back now, I should probably include this cost for vacancy...

When you go to sell your property NOI is king and there are only two ways to change it, revenue up and expenses down.

Cloud:I didn't work through the "rosy" financials provided in the listing, but my first impression is the large down payments are needed to achieve the returns listed in the advertisement ... which generally means the business is overpriced ... you would be paying too much for each dollar of revenue.

Also keep in mind, that although they CLAIM they are representing owners, their goal is to gather as much revenue to keep the government running.

Hi Dong,Since you mentioned "profit"  and  you further brought up that depreciation is super high since you were renting it.I will assume the original purchase price was $380,000 and you were depreciating it the past 7 years and now your taxable gain is $116,727 calculated as follows.400,000 - 380,000 - 96,727(depreciation at 7 years assumed brought on jan 1 and residential building) = 116,727.Your agent is referring to section 1231 of the Internal revenue Code where the IRS allows you to DEFER gain on an investment property if you sell and acquire an investment property.The code calls for very strict rules on when you need to choose your new property once your property is sold.

Is it to build a portfolio with revenue generating properties?

You should keep 50% of your revenue as earnings.