I bought it an rented on long-term so far. 2beds, 1bath each.monthly payment $2,300monthly income $5,000What made you interested in investing in this type of deal?

 16 terms you need to know in commercial real estate:1.Internal Rate of Return (IRR): A metric used to estimate the annualized return on an investment based on the timing and magnitude of cash flows.2.Cash-on-Cash Return: The annual income generated by a property expressed as a percentage of the initial cash investment.3.Discount Rate: The rate used to discount future cash flows to their present value in financial models; often represents the required rate of return.4.Capital Expenditures (CapEx): The funds set aside for property improvements, renovations, or major repairs.5.Gross Operating Income (GOI): The total income generated by a property before subtracting operating expenses.6.Operating Expenses: The costs associated with managing and maintaining a property, including utilities, taxes, insurance, and maintenance.7.Debt Service Coverage Ratio (DSCR): A measure of a property’s ability to cover its debt payments, typically calculated as NOI divided by debt service.8.Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the property’s appraised value, used to assess risk in financing.9.Equity Multiple: A measure of the total return on an investment, calculated as the ratio of total cash flows to initial equity investment.10.Residual Land Value: The estimated value of land after deducting development costs and desired profit margins.11.Sensitivity Analysis: A technique used to assess how changes in key variables (e.g., rent, expenses, interest rates) affect financial model outcomes.12.Operating Pro Forma: A projection of a property’s income and expenses over a specified period, typically used for budgeting and financial analysis.13.Cash Flow Waterfall: A structured distribution of cash flows to different stakeholders in a real estate project, often involving equity investors, lenders, and developers.14.Leverage: The use of borrowed funds (e.g., a mortgage) to finance a real estate investment, potentially amplifying returns but also increasing risk.15.Equity Investment: The amount of money invested by equity partners or investors in a real estate project. 16.

So $100K is “profit” or “income”.The $100K income will come from total investor distributions over the 5 year hold plus a shares of the profits due to an increase in value. 

The tenants pay on time and are family members so they’re in there for a long time however, I don’t think they take good care of the home and fear that $hit is going to hit the fan and is going to cost me a year or two worth of all that net income and headaches.

Understood but you may want to consider the income you are missing out without rehabbing the apartments.

No one enters any of these fields to make an average income . 

I am looking for a place to house hack and looking for income properties! 

Many times in my journey I've hit a "cash crunch" where, despite a high savings rate and income, I've run out of money to finish a project.

Projected rental income is around $2,850-$2,950, with current PITI at $2,277.

For the purpose of just understanding the napkin math I provided above it would be the following assuming an IR of 7% and the RF of 1.458%:PP X (IR+RF)= Int and Principal PMT1.69M x (8.458%)= $142,940DSCR= 1.25 (To Ensure your Debt is Serviced by Your Income)$142.940 x 1.25 = Min NOI of $175,675Now I am not saying this is not a good deal, but if you were planning on ONLY borrowing at market rates from the bank, it would clearly not work so thats what the quick math would tell you.