That'd be the ideal scenario.

The more you learn, the more you earn; financially as well as spiritually.Successful people read every day: Reading is a common past time of many successful people.

I personally would never pay a $6k flat fee to a realtor on a $60k property nor is that common here.10% is ridiculous and I'd suggest finding a different realtor who doesn't pick their fees out of thin air.

I’m sure I’m missing a few scenarios but you get the gist of it.

Most of the lender has an separate appraisal department which can help you on this scenario to determine the type of property although last decision is from appraisal company.

Even in the best case scenario, the ROI does not justify the large capital investment and relative lack of liquidity as compared to my stock portfolio (where I have more knowledge & risk tolerance, even in volatile markets). 

There is no mention of smoking in his lease but we have informed him that we have gotten complaints from the other tenants and he is not to smoke anything in the apt or common spaces anymore.

I understand I’ll have to hire a property Manager, I just don’t understand how security funds are handled Incase of emergency and immediate attention in the scenario where I may or may not be able to reach right away .

If we were to rent out the front house that we currently live in, I would estimate it to be about $3500 or more for it, since it was remodeled, and it looks great.Analysis:So I did the math (high level) using 2 different scenarios.Scenario 1: If both the houses were rented.Property/Deal ProfileGeneral GuidelinesPurchase Price700,0001 Percent Rule (%)0.857142857Down Payment (%)3.50%50 Percent Rule3000Down Payment ($)24500Cap Rate8.214857143Interest4%Cash-on-Cash Return26.73744578Term (years)30Loan amount687,321IncomeCash FlowRental Income 12500Total Monthly Income6000Rental Income 23500Total Monthly Expenses5075.33Laundry IncomeStorage IncomeMisc IncomeTotal Monthly Cash Flow924.67Total Monthly Income6,000Total Annual Cash Flow11096.04ExpensesCash-on-Cash ReturnTaxes750Down Payment24500Insurance58Closing Costs0Water/SewerRehab Budget30000GarbageMisc Other-13000ElectricGasTotal Investment41500HOA FeesLawn/SnowVacancy200Repairs200CapExProperty Mgmt.Mortgage Insurance Premium586.33Mortgage3281Total Monthly Expenses5,075.33Cash-on-Cash Return26.73744578 Based on the above analysis, here are the key takeaways – 1)The property cash flows - $924/month 2)Cash on cash return is 26% which is pretty good in LA I reckon.3)The main thing I would like to note is the solid Cap Rate of 8.2Scenario 2: The actual scenario with only one rental income since we moved into the front house.Property/Deal ProfileGeneral GuidelinesPurchase Price700,0001 Percent Rule (%)0.357142857Down Payment (%)3.50%50 Percent Rule1250Down Payment ($)24500Cap Rate2.214857143Interest4%Cash-on-Cash Return-74.46737349Term (years)30Loan Amount687321IncomeCash FlowRental Income 12500Total Monthly Income2500Rental Income 20Total Monthly Expenses5075.33Laundry IncomeStorage IncomeMisc IncomeTotal Monthly Cash Flow-2575.33Total Monthly Income2500Total Annual Cash Flow-30903.96ExpensesCash-on-Cash ReturnTaxes750Down Payment24500Insurance58Closing Costs0Water/SewerRehab Budget30000GarbageMisc Other-13000ElectricGasTotal Investment41500HOA FeesLawn/SnowVacancy200Repairs200CapExProperty Mgmt.Mortgage Insurance Premium586.33Mortgage3281Total Monthly Expenses5075.33Cash-on-Cash Return-74.46737349In the actual scenario, I am paying $2575 every month towards the house.

My scenario is this I am exploring a new market and putting together a 3 member partnership.