This cost no more than finishing a room and is worth the extra effort in standing above the competition.

You should be able to figure this out pretty easily with an online calculator given your cost of financing.

Problem is the renter is getting the extra money and not the landlord.The landlord is getting the extra usage and wear and tear and higher water bill.Thoughts.......

I'm looking to buy, rent for the extra cashflow, then eventually sell down the road when and if the price is right.I'm also planning on moving across the country in about 2-3 years...perhaps even sooner, but I don't want to wait that long to start investing because it might not be a buyers market then.So, I'm not sure if I should invest here now and then manage from afar after I move, or start investing there and manage from afar now.

Plus I kind of like the idea of only doing it when they are late, charging all of the extra fees so it stings quite their wallet quite a bit.

I doubt the buyer will have any extra funds to cover the spread in option 1.

i live in ca so i know i would have to foreign file here in ca. im sure it will be an extra expense having a foreign llc but am willing to overlook the extra expenditure if it will ultimately protect my assets BETTER than what a california llc can do...looking forward to some words of wisdom. thanks in advance

If you do this, you can end up spending many many many more hours babysitting a property than the extra cash is worth.

Hey Danny,I think you're messing up some numbers above.For the conventional loan and hard money scenarios, you need to subtract your debt payments from the $5400 before you calculate the COC.For the cash purchase, your gross income is $10800, but your cash flow after expenses is only about $5400, so your COC is actually half what you indicate.In reality, the returns on this deal are considerably less than you've calculated in your scenarios.

The buyer has no extra funds to pull from.