That's usually a higher rate than the 15% long term rate, but it depends on your personal situation.That assumes you're not selling a personal residence and that you're not a dealer.

Pray for appreciation.There are a lot of investors who reside in high priced markets (CA, NYC...etc) who decide to buy in "cheap" markets like Memphis lured by the low prices and "cash flow".

It is a great service to the residents though and may give you a better selling point over your competition justifying higher rents.

A residence you live in, whether rented or purchased, is nothing more than an expensive doo-dad.

This may not be the correct forum but, you guys (and gals) have consistently amazed me on your knowledge of RE in general.I'm purchasing a Freddie property for my personal residence.

Sending a guy with baseball bat to PM's primary residence?

Most were his primary residences actually.I always was a good saver and had saved up a nice chunk of change at that point and the thought of buying and renting for long term positive cashflow was very appealing.

There is a pool, playground and basketball ct.Specifics:$150k cash for all 32 units.Expenses are higher than usual as they include a $300 per building HOA cost for pool and landscape maintenance.Owner pays only water about $125 per building.Property tax:$1300/buildingInsurance $600Vacancy needs to be assumed highBuildings were built in 1971 so expense ratio will be above 50%.Onsite resident manager and super on site in exchange for free rent of a 2bd and 1bd.Although price per door is less than $5k the high expense ratio, low vacancy and sketch neighborhood have my ROI questionable and giving me very cold feet.

I have not closed a deal yet and further more I have not found a deal yet, but I have made steps to free up personal cash-flow, clean up my credit report ( old stuff that all I needed to do is dispute and wow there gone now) and refi my personal residence from a %5.75 interest to current rates.

If he thinks he should get part of the deposit, he needs to take it up with the current residents and their new roommate.