Cecilia (I put a stock picture of what that looks like below as wellLastly, along with the interior work on the 2nd floor being continued tomorrow, the plumber will be back to finish his work which will largely consist of de-winterizing the property completely.

When I buy a company stock I am buying peoples time and management skills, the assets of the company may or may not be worth much.  

The property Property $200,000 Down Payment 20% - $40,000 4 unit complex – rent per unit $800/month ($3200/mo total) 2% Rule – at 2% this property would rent for $4,000/mo This property is at 1.6% 50% rule – 50% of rental income will go toward expenses This property would be $1600/month This expenses include – repairs, vacancies, utilities, taxes, insurance, managements, turnover costs, and occasional big ticket repairs Net Operating Income – NOI Income after fees, these would be the fees listed in the 50% rule and do not include principle and interest For this property - $1600 (not the true number, but based on 50% rule) Cash flow Any money left after subtracting principle and interest from NOI Prinicple and Interest – 30 yr fixed at 4% on $160,000 - $764/mo Cash flow = $3200 - $1600 (NOI) - $764 (P&I) = $836/mo or $10,032/yr Cap Rate Annual NOI/purchase price $19,200/200,000 = 9.6% Return on investment of $40,000 over 30 year life of mortgage Cash flow - $10,032 annual return – 25.1% return 30 years = $300,960 This is a conservative estimate since this money could obviously be re-invested as it was received monthly and the rent would be increased to reflect inflation over the 30 year period Property value at 3% appreciation for 30 years $485,452 30 year total return on $40,000 485,452+300,960 = $786,412 This is a ~10.5% annual return on investment $40,000 invested in stocks/mutual funds at 7% would have returned $304,49I believe this is all correct, but wanted to get some feedback to confirm my understandings of these concepts was correct.  

I am running to a dead end here and need some help.  

(or however long it takes you to save up the downpayment for the next purchase) Otherwise, you will be stuck in that house (and that house payment) and this strategy will be dead in the water. 

This will capture : Absentee owners, Probates, preprobates, Pre-Preprobates, greedy/broke heirs, tax defaults, family disputes, dead beat cousins, dead, vacant, orphan, abandoned and deferred maintenance.  

I was sort of shocked to see this popped up, thanks for the kind words.We've set out to make compliant tenant screening for property managers and multifamily owners dead simple and super accurate.

Comparatively stock market does a lot better especially if you are buy and hold index funds over the long haul.The biggest thing going for real estate in my opinion are- Rental income generated (comparing to stock market again because i understand that a lot better.

Anything from a hole in the roof to fallen tree (safety hazard) to burst pipes to dead HVAC, so your reserves need to be relatively accessible.That said, we keep $3k in a checking account for each property.

Additionally, much of the existing housing stock has not been updated for a while due to having long-term tenants.