I do agree with Edward that your operating expenses will be higher.Your return after 4 years will be about 11% per year.

With the rental income being $1600/month, figure operating expenses of $800/month and Principal+Interest of $785/month.

Hiding or being allusive about how your business operates is unethical, maybe illegal depending on the laws in your area.There is nothing wrong with a business capitalizing on relationships the business has built.

That is amazing - and I bet many people on BP would qualify.I also learned mind blowing stuff like: did you know you can 1031 exchange OUT of something you own INTO something you already own?

I mean if they don't like Pizza do they call the FBI on the local pizza joint for sending a menu, or Dominos (Since they operate across state line I think it would be a federal offence...)?

Your best bet is to give him notice and hope he just leaves without causing a problem for you.

What order of operations you put these in will not matter much.

Those tend to be the best bet on non-normaly loans.

I would bet if you drove to those buildings during the day by yourself, you would not get out of the car.Great cash flow is super easy to find in those areas.

It is possible for the national index/etf/itb to be soring and the city/town in which you hold your properties just lost a major employer or vice-versa.For most real estate investors your best hedge is to buy your properties well - when performing diligence model the property with rent set under market, a sufficient allowance for vacancy & bad debt, and realistic to conservative operating expenses.