“I am willing to pay you a 14% annual return paid in monthly interest only payments.

Assuming you put 20% down, that's only a 12% annual return.

We use it for a week in August and 1-2 other weekends during the year, staying under the 14 days annually.  

The annual revenue on that should be $120,000 at full capacity. 

I rarely raise rents in my units and usually wait until a vacancy occurs, research rental rates via craigslist, etc, and then rent for whatever the market will bring.I recently bought a duplex where the previous owner raised rents almost annually by 2.5-3 percent each time.

This company grew and grew and has loaned and sold over $200 million in small loans / mortgage notes over the last five years.I immediately started buying these notes and holding them with my own funds and receiving monthly direct deposits from the servicing center I connected with that collects from all of our borrowers and pays all of the note holders, myself included.My rental properties haven't produced a 12% annual return and my bank surely doesn't care to try to, so these mortgage notes have grown for me to provide much of my monthly income now.  

Other states don't have the $800 annual fee, so again, it all depends.Regarding the partnership, I highly recommend you have an attorney draft the operating agreement!

The way i see it, i will make about 4K on the house annually, which is an 8% return on my cash investment while accruing capital appreciation. 

The property Property $200,000 Down Payment 20% - $40,000 4 unit complex – rent per unit $800/month ($3200/mo total) 2% Rule – at 2% this property would rent for $4,000/mo This property is at 1.6% 50% rule – 50% of rental income will go toward expenses This property would be $1600/month This expenses include – repairs, vacancies, utilities, taxes, insurance, managements, turnover costs, and occasional big ticket repairs Net Operating Income – NOI Income after fees, these would be the fees listed in the 50% rule and do not include principle and interest For this property - $1600 (not the true number, but based on 50% rule) Cash flow Any money left after subtracting principle and interest from NOI Prinicple and Interest – 30 yr fixed at 4% on $160,000 - $764/mo Cash flow = $3200 - $1600 (NOI) - $764 (P&I) = $836/mo or $10,032/yr Cap Rate Annual NOI/purchase price $19,200/200,000 = 9.6% Return on investment of $40,000 over 30 year life of mortgage Cash flow - $10,032 annual return – 25.1% return 30 years = $300,960 This is a conservative estimate since this money could obviously be re-invested as it was received monthly and the rent would be increased to reflect inflation over the 30 year period Property value at 3% appreciation for 30 years $485,452 30 year total return on $40,000 485,452+300,960 = $786,412 This is a ~10.5% annual return on investment $40,000 invested in stocks/mutual funds at 7% would have returned $304,49I believe this is all correct, but wanted to get some feedback to confirm my understandings of these concepts was correct.  

Because the house needs some updating, we are getting it for less than what comps are in the area.What worried us initially is the 20-year Solar City lease, with 2.9% annual payment increase escalatory, tied to the property.