That would be the minimum return.This area has showed 10% growth for the last three years, so there is the potential for the investor share of appreciation to be another $18,000.You have the potential to get $18,000 to $36,000 back with $1000 out of pocket.

Now step-by-step a million dollars idea (if we will have same pattern):1)Create Mortgage Company2)Borrow from US bank $5,500,0003)Lend 4,250,000 EUR equivalent of $5,000,000 with 0% fixed for two years (after two years the dept should be paid in full) to some silly borrowers.4)$500,000 goes to serve you dept.5)Two years later get back from them 4,250,000 EUR.6)Change 4,250,000 EUR to 6,247,600 USD.7)Pocket $747,600. 8) 8.)Become a guru and sell this course for a big $$$$.

This allows you to skip the traditional steps of putting 10%-20% down for an investment property and you don't have to come out of pocket for the rehabilitation.

You would include holding costs, rehab, downpayments, and anyting else out of pocket.

Just looking at that it doesn't look like it makes a lot of sense however I don't currently have any real tax deductions so looking at an amortization schedule I can reduce my taxable income by over 21k the first year which should equate to an additional 6k in my pocket, obviously this number will go down over time.

ok cool I love my mom and my parents - and since my mom is a real estate agent I didnt want to work with her as personal feeling or other things might get in between my ideas and purchases, so anywaysmy mom was explaining to me that since I am renting now I should be buying a house with a multi family and rent the upstairs floor, this will save me lots of money, this makes sense, since I do still work and do real estate investing on the weekendsbut I am still within my lease and can not get out (I can just lose my deposit and pay another fee) I was thinkin of gettin a multi family and renting both out with a pretty good ROI - this will profit me some money in my pocket though it will not be big atleast there is still cash in my pocket.What do you think I should do find a property and live in it and lose my deposit or stayin renting until the lease is up and currently get a investment property?

Until then, appliances may fail but outside of that, I don't see what major items could fail (unless the tenant is responsible in which case the $$ wouldn't come from my pocket).Regarding depreciation, my understanding on the commercial vs. residential is that any property that's zoned and operated as residential property can be depreciated at the 27.5 year rate.

Now take that number and annualize it, and divide it by how much money out of pocket the deal will require you to spend.

i don't know, if i have to worry about less than $20 per month, when i get an extra $4,000 to $5,000 in my pocket, than i am in the wrong business. plus, i plan on selling using a wrap to create cash flow. grant it, i'm talking about homes in the $80,000 price range.it would definitely make a difference on higher amounts.jim

You use the cash flow to pay the mortgage payments on the home and pocket the rest less taxes.Am I missing something?