Cash on cash would then include the principal and interest received after reducing the amortized portion of your purchase price, that is the return of capital, not profit.It is what it is and there is nothing more, buying notes at a discount can give an obscene return which should be plenty.

Expenses need to be looked at carefully, to see what can be reduced.

Ended up having to reduce the rent by $100 a month and filled it at the end of December.

You might need to defer interest on the 2nd note or reduce the interest rate.

A house hacker can justify paying higher prices knowing that they will still be reducing their living costs over buying a SFR. 

Anyone who gets conventional financing or has loans on their properties knows the importance of reducing maintenance. 

Reduced maintenance costsIf the building is more efficient, less water (water heating/boilers) and less conditioning of air (HVAC) is needed.

Can you bang one or two of them off, sell it off and reduce your risk?

Hey guys,My partner and I were having a conversation about which approach is better: either buying a rental property or building a complex with the same amount of capital e.g $500,000.To me, the analysis makes more sense to build a property in an ideal city and rent higher than to buy an existing rental property: reduced repair costs, city tax incentives, competition among contractors/builders to build the most units for your money.Thoughts?

We are looking for a property for us to do house hacking, as much positive cash flow as possible (in this market), and use as primary residence to reduce our income taxes (combined income 170k+ per year)We found a house in north Long Beach CA, built in 1930's, asking price $490k.