I was polite but made sure to mention I probably bring in twice per year what you do so never judge a book buy it's cover.

.- Lets use the 50% rule for ongoing expenses.So after you've gone one cycle of option 2a (that is you're done paying the first property off), the numbers look something like this.Cash Invested: 108000*Gross Annual Income: 14400Expenses: 7200Debt Service: 0Cash Flow: 7200* debt service while you're paying it off isn't counted, because the rent covers it.So, you've got an income of 7200 on 108000 invested, or a 6.67% return.

Elizaveta, I will take a crack at it since no one has responded yet. 1) My first deal was a fairly in depth rehab which included foundation repairs, window replacements, garage roof replacement, electric work, plumbing work, floor refinishing, and a lot of the things we do to almost all our rehabs (new light fixtures, new outlet covers, new appliances, new doors, etc).

My ultimate goal is for passive income earned with these properties to cover my current living expenses (and hopefully more).

Even floor coverings carpet, vinyl, and tile can get out of date before it wears out.

Also works great on most any stains that need covered, we use it as our primer on old trin that tends to bleed through most primers.

The rents just aren't high enough to cover the cost to purchase.

It could be that they viewed your ability to cover the deal was limited to hald the payments remaining.They could have had other issues as well, with the contract, buyer, collateral, concentrations of business in that type of contract or area, your ability to cover the deal or other issues.Lastly, buying a certain number of payments is much like simply making you a loan taking the contract as collateral, the discount is the interest you pay, but technically not a loan but a contract purchase.

Every electrical cover, light switch, door hardware, etc...

I'm thinking of ways to completely cover monthly expenses and hold them for the long term.One such idea is a vacation rental company in Las Vegas.