Bought brand new single family house in a new subdivision - 2400 sq ft, $350,000 priceAdded a concrete pad/patio in backyard for $2500, radon gas mitigation system for $1500 - total improvements $4000Rented out for two years, $2425 per month rent.Operating expenses includes property tax, property insurance, HOA, 3% of rent as vacancy rate, 3% of rent as maintenance reserve, interest on mortgage.monthly cashflow year 1: $2200monthly cashflow year 2: $1700 (as property tax of $500 assessed after year 1)Cash on Cash returns:year 1: $21.29%year 2: $13.15%Cap Rate:year 1: 7.55%year 2: 5.7%I read that average cap rate should be between 8% and 10% for a reasonably good deal.

I see you have an excavator not sure if that tax treatment is still there but for your business you can take a massive first year write off and you can buy equipment about as easy as anything out there these days.

If you ever go to the San Jancintomonument, you will see a big concrete STAR at the top.

I have family who is significantly involved in real estate, but I’d like to get some other points of view before diving in.I had an idea where I could bid on foreclosed homes and then rehab significantly to trim away from my massive tax burden.

This usually means that they ask for and get money they have not worked for yet through large deposits and or having contracts that have payment schedules that massively benefit the GC and not the homeowner.

It was in good shape, had a great concrete tile roof and only needed minor repairs.

It just seems like a massive undertaking and I am not even sure I have the funds to invest in something like this but I am a dreamer and have always had a love for real estate and investments in properties. 

She will fill in the broken concrete and build a gate around the back.

If you are willing to go through the process of living like that you can make massive steps forward with relative ease and simplicity.

I sold it at the right time both in terms of the market, but also the condo board...they took out a massive loan (multimillion dollars) just after I sold it.