@Matthew McNeilI would add to your requirements that the Investor does NOT need the cash flow.If they need the cash flow, then this will NOT work for them.This narrows down the kind of Investor that should follow this strategy.The only added Caveat I would say is that I include your JOB as a cash flow.So if you are making a lot of money in your profession, then how is an extra $100 per month or even $1k per month going to somehow help you?

Here's the breakdown for those who are wondering;House purchased at 140k with 20% down (28k)Rehab/Repair costs:  $3100 of my own cash, $2100  (paid to me at closing) to the painter from sellers for the remainder of the exterior paint job  PITI Payment:  $861.00Rent: $1570.00What does everyone think for my first investment? 

For low income neighborhoods, I prefer SEC 8 which is essentially an insurance program for the landlord that ensures they will get the rent, even if the tenant loses their job.

Somewhere in the middle of my investing I quit my job and became a Realtor as well.

Oscar Haselden with Foundation Mortgage did a great job on the 203K loan.

Specifically about the Job and Population growth, Vacancy rates, New building trends and general health of the Multifamily sector in NM.

(the down payment is completely relevant to the seller)Interest- 7% is pretty standard...it's a premium paid for consideration in carrying the noteAmortization- 30-years is typicalPayment- I would look for the actual P&I based on the amortization schedule, but again, this is relative to the sellerBalloon- 48-60 months is common, and this is completely up to the seller as well (If sellers are leary of the time frame, I always agree to attempt a re-finance sooner...but no guarantees)Some extras:I always pay the listing agent's commision based on the transaction price...otherwise, you can structure a partial commission the first closing and a second commission when the balloon is due...waiting 48-months for the rest of your commission is crazy, thoughWe pay all the doc prep fees (note/mortgage/amortization/assignments/personal guaranty) Typically around $300, so not bad.- use the attorney at title and add it to the HUD-1We use a clause in the note that waives the right to defend a foreclosure in default, so the property returns to the seller without contest (varies from state to state I imagine)We also pay the sellers closing costsAll of this stuff is negotiable...you can always push things with these...like lower the down payment and have the buyer pay all your clients fees and your commission, etc.Give me a shout if you want to chat more about this topic.

@Joe Garvin Loving the subtle beach theme of the unit, and great job getting to where you are now in 6 months!

your post is another reason to Hire a Property Manager, they know what to do and how to follow it through according to the law, the Laws are changing quite rapidly its hard to stay current, thats what a PM is for its there job to stay current.

Like many of you, I’ve put in the hours and years at my day job, saved, done the right things, and realized that I need to be doing more than relying on stocks and 401(k)s (I’m not a fan of mutual funds).