. $200,000 NOI($2MM loan @ 4% on 25 year amortization schedule)–126,680.88 debt service (PI)73,319.12 initial cash return200,000 NOI−79,134.6 interest payments–77,272.72 depreciation expense on 85% of purchase price (cost basis would be more accurate, but don't specify other expenses that would go into basis, like closing costs or improvements before you put it into service)43,592.68 taxable income35% tax rate used in your example15,257 tax due73,319 cash return–15,257 tax due58,062 after-tax return11.6% cash on cash returnA very nice return, indeed, but less than half of what you're promoting.

There isn't enough equity to really entice any investors either.

Too many stories on here of out of state people that purchased in what was promoted to them as a B/A neighborhood, that was actually a D neighborhood! 

No inspection contingency :)  I can see how that is an enticing offer.  

It is an investment of moneyThere is an expectation of profits from the investmentThe investment of money is in a common enterpriseAny profit comes from the efforts of a promoter or third party

I wonder if a 2BR 2 bath (with a master suite upstairs) would entice renters.

People have been promoted to new positions within Samsung etc etc.

I love investing and the real estate side of it is still enticing to me.

On top of, I can promote any of my GV numbers to be primary.

She is now saying she is being relocated for a promotion at work (not sure if this is an excuse to get out of the lease or not) and asked if we could work with her on some type of arrangement.