If you subtract the 41,500 in expenses you are at 87,000 for NOI on this scenario.

As is right now gross rental income is 3178.00 with 2222.40 in expenses cash flowing at 955.60 if I were to put rents to market value after improvements 3640.00 gross 1417.60 net per month which would be a 12.4% COC ROI after improvements were completed

Combined with a full time job, this should leave you with an inexpensive place to live and a paid off property.If you want to move onto another property, sell the last unit and use that cash as a down payment on another place.

Or it could be that the superior quality and location of the lower-producing property simply merits the lower ROI or ROE -- which, if you analyze it, is not exactly horrible.Let's say the 1% income property chews up half its rent in expenses as many here will tell you it will.

You will learn a lot fast and will meet a lot of great people.I am in MA and I invest in rentals West of Pit and I know that whole area has a lot of good inexpensive buy and hold opportunities.

Very inexpensive to buy here, strong rental market, etc.

Investing in expensive markets like SoCal can be tough but there are always opportunities for creative, hard-working, honest people who want to learn and act on that knowledge.

You can invest in an inexpensive legalshield account for all your legal questions, and situations.

Ultimately, the property I bought (compared to Seattle prices) was really inexpensive.

I would think that a small inexpensive multiplex would be great at hedging your risk of full vacancy.