I like the idea about the P&L's, projections, etc – adding that to my list.My current situation is a big factor in why I've committed to real estate investing – need to get myself on that side of the register when it comes to these agreements.

A lot of out of town buyers don't realize that majority of multifamily of 2-4 units was built a long time ago and are in older neighborhoods.Over the past year or 2 there has been a spike in multifamily demand and appreciation which is a major factor in the available inventory for multifam.

@Leonard Calvin It depends I'm going to be anything a property management company in the beginning as well until I can fully retire and get out there and get to know the handyman sometimes you just have to factor it in the cost until you're able to get more hands on involved sometimes it's worth it if you're experienced in this you know what I'm talking about

I'd add a much higher factor for vacancy.On the positive side, with such a low price it appears you are being very conservative on Operating Expenses.Good luck.

@Wilson Linder the passive vs active question depends on a lot of factors.

Brandon Turner's book on rental property investing gives a great breakdown of all those costs so I'm definitely already factoring all that in.It's a lot lol.

However, if you change any of the factors and the result could end up being very tense.

Either way very skinny deal. and I suspect your TRUE cash flow will be far less than 600 bucks once you factor in all the running costs associated with leasing the property.

Pictures and how the home is marketed or “presented” also are important factors.

Hi @Misa Nguyen this will only work if you factor in the true cost of buying, holding, and refinancing, and you will not be able to pull out all of the cash you put in unless you can drive the value of the condo up somehow.