You could also buy in an area where you break even on cash flow but the area has a track record of rapid appreciation in the long run OR you could buy in an area that has shown to throw off decent cash flow and some appreciation.

Can you throw some numbers so we can analyze them?

Hey @Ryan, just wanted to throw out a general warning about throwing around the kind of cash it will take to fix up one of the big 4BR's and then renting it Section 8.

The property manager gets very low pay for what they do,a bunch of headaches,and then do not have the future equity payoff plus the current cash flow like the owner does.It's like asking an 8 an hour worker to care as much as you do when you are the business owner pulling in over 100k a year.I am talking about little houses here and not managing apartment buildings or commercial.I think interviewing the tenant is a waste of time.The tenants always see the PM's as the bad guy and will throw them under the bus whether they are doing their job or not.So I think saying you believe the tenant over the PM you are employing will damage the relationship.Instead just communicate what you expect in writing to the PM.You are paying XX and for that you want XYZ.Then the PM will say you are wanting to much for what you pay,or I want more money for that,or you never asked me for that etc.If you can't mutually agree on what is provided for what fee then part ways.I find in many cases an owner assumes they will get XYZ and that is the problem.Nobody is a mind reader and you have to lay out the dots in writing real close.I am not saying this is your situation but many times it's a miscommunication and expectation issue.

Originally posted by Adam Craig: I wanted to do this because I can afford it and want to pay less interest.And please throw aside this canard about paying less interest.

NNN is more passive but you need much more cash to play.As shown above a Walgreens you can get in as little as 5% down on a new build 25 year lease.To make the numbers work sometimes it is closer to 7 to 10% down.Price is about 4 to 6 million.This means with due diligence you need about 300k or more liquid cash to play.Cap runs about 6 to 7 on a new build.The 25 year lease has no rent bumps at all but does in the option periods after the 25 year firm term.Most buyers buy a Walgreens or CVS for a tax shelter and have a non-recourse loan with a credit rated invested grade tenant.After the 25 year term you are throwing off great cash flow free and clear for your retirement.So many see it is as an annuity of sorts.

Do not throw their stuff out at the curb.

Let me throw out my Maslow Hierarchy of Needs principle for remodeling.

In the end I do the research and come up with facts that usually refute it all.Realtors, like many so-called professionals. sometimes like to throw out a bunch of bs just to make themselves sound intelligent.

You will then be better able to ask specific questions which are not quite so broad.There is a wealth of information here on BP, and if you take some time to read first, instead of throwing out a question which could take volumes to answer, then you will have already read the volumes, and we can better help with your specific needs.