On a total return basis, which is really how you should start looking at the project, you are doing pretty well.

@Cheryl C -- I can totally see that.

The total cost of ownership per year would be the business license which is $250 and the annual list of officers which is $125 plus a registered agent fee since you don't live in the state which runs roughly $100 a yr as well.

Having a concentration of units in one complex that I don't have total control of just doesn't make a sound business plan IMO.

People here are putting out the effort to find properties that will either give higher appreciation than that and/or generate generous cash flow to give them higher than average total returns.

I just feel like something must be wrong for it to be such a great deal.10 unit ranch style apartment building (6) units 1bd/1ba (4)units 2bd/1baAsking price $155,0001bd rents for $300 2bd for $400 - Total $3400/mo$155,000 X 2% = $3,100$3,400/2 = $1,700$155,000 at 5% over 30yrs = $832/mo paymentprofit = $868/mo Owner will finance.

However I heard FHA loans can be nice because of the low down payment.How should you negotiate closing cost to minimize that total closing costs?

We just put the total amount on our OTP, and don't refer to a rent credit.

NNN and also self storage have much higher barriers to entry than SFR properties.You need to decide if you are open to pooling money with other investors who want to be in that asset class but do not have the total funds to go it alone or do you want to save up more money to buy yourself.You really need about 200k liquid or so to get started with quality NNN.

(I actually avoid low priced homes, as they are the ones that cause all the issues...)But, you may want to look at:$93,000$4500 assignment fee$895 rent$2400 total seller concession towards funds to close.