purchase price: $60,000Mortgage: $54,000Buying costs: $1,200Monthly Mortgage payment (6%/30 years): $ 324Taxes: $1,380Insurance: $300Cleaning/Maintenance (5% annual income): $469Vacancy (8% annual income): $816Annual Rent: $850 x 12 = $10,200Cash on cash return : 46.5%Am I missing something!?!?

Being as they are my parents they would more than likely simply loan (no interest)/give me the money, but I want to approach it from a business standpoint A) to show them they would get better returns than just sitting in the bank and could be great supplemental income for retirement years and B) I'm not looking for a handout but truly trying to learn how to structure deals for private money in the future.That being said those of you who have partnered/joint venture would you be so kind as to share some of your different agreements?

If that number is positive its added to your income figure if its negative you have to qualify for it as a monthly obligation similar to a car or min credit card payment via the typical 43-50% debt to income ratio depending on where your reserves/assets/credit are.If you've held the property long enough and filed rental income the schedule E of your tax return (or corporate return) will be used to determine the net income.The formula for net qualifying income once the tax return is filed is made to seem complicated however in essence it is the monthly average net operating income(NOI) based on tax return minus monthly debt service payment.

Just be ready to return the deposit and rent money minus the days help for the property unless you had a earnest money deposit for listed.

You call and they return your call late the next day, way too late to help and they will most likely want to meet with you first before they give some free advice over the phone in your emergency.In RE we deal in transactions that have value and take on liabilities in the ten and hundreds of thousands of dollars.

It should reflect on your schedule E of your federal tax returns.

The CAP and ROI seem attractive, but am I giving up too much in terms of the returns given my equity position??

If these things are cash-flowing for you after you get them up and running it maybe a better return than dumping right away.

I am looking for a memory upgrade and the CPU is running slow, but I think Houston is a great place to be in REI.

It seems to me by investing it I could get a much better return on my money rather than leaving it tied up in a house that I don't think can go much higher.