It is probably the simplest way to get involved in real estate with no experience and still get a decent return without taking on too much risk. 

In a cheaper market, you can get that return unleveraged.

Hi @Brandon Fo,Advice to give would depend on what you want in return, what type of property and what quality tenant. 

25% cash on cash return?

I know everyone on the forums for he most part is baking in certain assumptions to their estimates such as repairs, capex, etc. to calculate their return on investment and expected cash flow.

It is tougher when California or similar will take reduced yields to purchase and do not have the currency conversion loss the Canadians do.For me to work with foreign clients these days they have to have researched all the taxes, withholding,financing,return issues and be realistic about the numbers.

The question is: Can you reinvest $50k and still get the same return where your headed? 

My thinking was even if I'm not breaking even on cash flow: 1: I can afford to pay a few hundred dollars more out of pocket every month, and 2: When you factor in the Rate of Return on debt pay down and the Rate of Return on Appreciation it should come out as a solid investment over time.

If you can get into an investment returning 8%-XX% you can use that to make the payment on the loan and pocket the difference.

I would hire one out independently so that the results are not biased.Secondly, you should absolutely get your borrower's financial information: recent pay stubs, last year's tax return, any other retirement accounts, or IRA accounts, etc. that your borrower can show.