The rate difference between FHA and Conventional is actually over 1% right now for Multi family propertiesCurrently the rate offered is 6.75% and 193/m in PMI (private mortgage insurance)That makes the payment with taxes and insurance roughly:$3453/monthTaxes were $3820, and insurance is $1800/yrCurrently this building can rent each 2 bed unit for up to $1800/m with tenants paying all utilities.All in cost to close is: $71,414.64If you rent both units for $1800/m you can expect gross cash flow of $147/mThis is the reality of buying a turn key duplex in the area using todays rates and prices.I want to stress, that this is actually considered a great property and deal in todays market for the areaYes, prices are high, and so area rates...My goal is to show what is actually going on.

What is the Cash-on-cash return?

There are many different successful strategies depending on your cash, borrowing ability, rehab skills, time, local contacts, or lack of any or all of them.

Purchase price: $270,000 Cash invested: $40,000 Sale price: $359,000 Contributors: Peter Vekselman Partner Driven, in collaboration with Seth Choate, successfully completed a fix-and-flip on E Wildflower Lane, Fresno, CA.

Cash-out now or hire someone more competent to handle your affairs. 

Purchase price: $220,000 Cash invested: $1,500 Sale price: $245,000 Contributors: Peter Vekselman Partner Driven, in collaboration with Denis and Samantha, successfully completed a quick flip on De Gage Drive, Prairieville, LA 70769.

I compare leverage, insurability, taking write offs, cash flow, monthly  expenses, transportability, speed of decline in a crash, ease of unloading in a crash, forced equity improvement, things like that.

If you buy in a location with significant and sustained population growth, you can use a cash-out refinance to reinvest accumulated equity as the down payment on additional properties.

Purchase price: $175,000 Cash invested: $40,800 Sale price: $305,000 Contributors: Peter Vekselman Partner Driven, in collaboration with Seth Choate, successfully completed a fix-and-flip on E Holland Ave, Fresno, CA 93726.

I'm working on getting a cash out refinance on a Rental property.