Secondly there is the factor of leverage, if you can buy/refi at 80% LTV with a 5% loan, your roi goes up dramactically.

Cashflow is great to have, but IMO your leaving too much equity on the table and am not leveraging it enough to its full potential.

Our investors generally leverage their credit to make money they otherwise would not.  

@William Alvarez welcome to BP.Two words ---------- USE LEVERAGE.

Hi,I was brought to this site via an interesting topic on Investor Verification and how that now works with the JOBS Act coming full force.I am heavily involved in the crowdfunding space and I plan to be very active in the real estate crowdfunding thread, and offering any insights that I can.I think "crowdbuilding" has a major place in this industry, and can't wait to see it grow, let alone see Americans everywhere (non-accredited investors) invest into real estate and become very aware of how fun and rewarding it can be.In turn, it looks like I will learn a lot here about the technology and trends that are happening.

That's what 5/1 leverage can do for you.

Real income for the bottom 90% has been stagnant for forty years, and has declined since 1999.he only way to keep consumption rising when incomes are stagnant is to boost the borrowing power (i.e. collateral and creditworthiness) of households by inflating asset bubbles that create temporary (i.e. phantom) collateral and by lowering interest rates so the stagnant income can support more debt.This is why the Federal Reserve and the other agencies of the Central State have been reduced to blowing serial assets bubbles: there is no other way to keep a consumption-based economy from imploding.But "prosperity" based on serial asset bubbles and near-zero interest rates is neither real nor sustainable: real prosperity is based on rising real incomes, not debt leveraged on phantom collateral.Read More

I love technology and have done many things online.

I tend to be more conservative, I like the idea of having a few properties free and clear rather than a bunch of properties highly leveraged.

It already sounds like you are going to explain to him the benefits of seller financing.Also I would not expect to get 3k in cash flow from this property especially fully leveraged with down payment.