Sounds like a good plan, just remember real estate is a long term path and your thinking on the right one.Might close on the new house so you won't have issues with improvements being made, you'll want those expenses to be depreciated as an investment property.

Originally posted by @Paolo Nascimbeni:In a NNN lease the tenant pays also for property taxes.Also 750,000 * 0.04 = $30,000  if you consider  the interest only  cost of the loan Great point - thank you.So keeping the cost just to Interest - its 3% a year. [1MM x 0.75 (loan amount) x 0.04 (Interest Rate) = 1MM x 0.03 ]So you see - it seems fair to say - the Net Cap Rate is 5-3 = 2%.Counting on the down payment - its 4 times - 8% rate of return on actual 250K that investor puts in.Does that sound about right?

basic sub too.. deal as long as your personally well capitalized. this scenario probably works.its the undercapitalized buyer and the sterling credit seller that creates a huge risk for a seller and I don't recommend any seller to participate in that type of deal.but since the sellers credit is already bad there is real equity in the deal that will keep you in the deal and you sound like you have the wherewhithal to pull it off..

Personally from what I'm reading it sounds like a problem property; unit vacant, all section 8, cashflows good, but the owner wants out.

If this carpet is in bad shape, pull it up, replace it with Allure.4.

You could probably replace your existing cabinets with basic builder grade cabinets for 1000. 

@Brandon Vu  it really sounds like you should sit down with an experienced real estate professional and ask all your questions. 

@Jayson H. sounds weird.

Hi Stephen Sokolow sounds great.

Or 34 sounds like a lot but once you're deep in the game you realize you need way more than that to retireMy expectation is (outside of obvious road blocks) approximately 30-40 units at hopefully 2-300 cashflow per unit would get me to a comfortable position in covering expenses (assuming that number is different for all people).