After 2 years, refi and pay the investor their initial investment + 10%.  4-unit apartment building (all units 2 bd/ 1 ba)3472 Sq FtRent: $740/unit/mo Price $ 195,000.00 Down Payment(%) 20.00% Down Payment($) $ 39,000.00 Closing Cost $ 9,750.00 5.0% Estimated Rehab $ 10,000.00 Total Invested $ 58,750.00 Principal $ 156,000.00 Int Rate(%) 4.50% Loan Term (Years) 30 Mortgage $790.43 $ 9,485.15 70% Rule ARV $ 292,857.14 Income Rent ($) $ 2,960.00 $ 35,520.00 Estimated Expenses Expense Monthly Annual Vacancy (5%) $ 148.00 $ 1,776.00 Prop Manager (10%) $ 296.00 $ 3,552.00 Utilities (100/mo) $ 100.00 $ 1,200.00 Prop Tax (3%) $ 487.50 $ 5,850.00 Insurance (100/mo) $ 100.00 $ 1,200.00 Repair/Maint/CapEx (100/unit/mo) $ 400.00 $ 4,800.00 Landscape (60/mo) $ 60.00 $ 720.00 TOTAL $ 1,591.50 $ 19,098.00 Cash Flow Tot.

After 2 years, refi and pay the investor their initial investment + 10%.6 unit (all 1bd/1ba) Property - 3950 Sq Ft  Price $ 190,000.00 Down Payment(%) 20.00% Down Payment($) $ 38,000.00 Closing Cost $ 9,500.00 5.0% Estimated Rehab $ 5,000.00 Total Invested $ 52,500.00 Principal $ 152,000.00 Int Rate(%) 4.50% Loan Term (Years) 30 Mortgage $770.16 $ 9,241.94 70% Rule $ 278,571.43 Income Rent ($) $ 3,300.00 $ 39,600.00 TOTAL $ 3,300.00 $ 39,600.00 Estimated Expenses Expense Monthly Annual Vacancy (5%) $ 165.00 $ 1,980.00 Prop Manager (10%) Self Manage Self Manage Utilities (100/mo) Tenant Pays Tenant Pays Prop Tax (3%) $ 475.00 $ 5,700.00 Insurance (100/mo) $ 120.00 $ 1,440.00 Repair/Maint/CapEx (15%) $ 400.00 $ 4,800.00 Landscape (60/mo) $ 60.00 $ 720.00 TOTAL $ 1,220.00 $ 14,640.00 Cash Flow Tot.

Richard:I personally do not know of any, however, I didn't know of any in our area initially. 

Have you considered deeding the property to a land trust where you are still the initial beneficiary?

If he was asserting that the initial cash flow is poor he would be correct.  

Yes, initially I thought I will pay through my income, but was not sure about it.

I will initiate with that conversation.

How long is normal to make initial investment back?

I believe I will be initiating a 1031 Exchange on behalf of my client soon (offer is submitted on Upleg), and I wanted to get some clarification on two questions:QUESTION ONE:She is low on cash for reserves in her bank account, so she will need some passthrough money from the buyer of her downlegs (she needs reserves in bank for loan on new upleg).Does this passthrough need to be first transferred from escrow to an intermediary account then her bank, or could it be transferred to her bank from escrow (skip 1031 intermediary account)?

I just put in an initial payment for obtaining drawings and permits to convert my 380 sq ft garage into a 1 bedroom 1 bath detached ADU, ballpark total cost is around $96,000.