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. 

You can buy sub2 as well.All that said, credit is a small part of the transaction, your education, experience, knowledge, team, and abilities all will factor in.

It may not cover the entire mortgage, but if you factor in the savings from other people people your living expenses and the wealth building that is going on, plus tax savings, and appreciation, - then it's totally worth it.

Hi Cody,If you are purchasing a home at 550k with 30k in renovations needed, with an ARV of say, $600k>= you will lose money.The average cost of sale is an absolute minimum of 3.5% when you factor in the buyer's agent's 2.5%, and closing costs 1-2%.$600k * 3.5% = $21,000 | $600k - $21k = $579,000 or ($1,000)  You would also need to have a broker's license in this scenario as well. 

I have considered the below factors that resulted in choosing Sacramento as the place.

You're buying the future cashflows of the property so a corporate signature McDonald's is going to trade for a similar CAP rate across the country, all other things equal ( term remaining, scheduled increases, NNN or Absolute, etc.)If you are looking at some kind of local single or multi tenant building, then your local market will have a larger effect to factor for likelihood of replacing a tenant should they leave.

I have a 3 bedroom SFR on the east side of Plainfield that we have been marketing for 21 days with minimal interest and I'm wondering if it has more to do with the time of the year or other factors?