As a newbie, I hope you don't mind me asking a question— how much capital did you accrue prior to that first property?

Preferred Return" AKA "Pref" Is what they are promising you (6% for example), but if they don’t hit the target it can accrue and be made up in the years to come.With zero experience in the real estate business & $100,000.00 to invest at 21, knowing what I know now… I’d, no doubt, Find a Team Of Multifamily Apartment Operators (B/C Class Operators) That have a Proven Track Record, leverage their expertise, and build a substantial relationship with them.

Compounding is when interest is charged on already accrued, but unpaid as of yet, interest. 

There are several factors that could skew the annual property taxes up or down for example:- If there were previously delinquent taxes, I have seen websites list the taxes as the total accrued amount instead of the individual yearly amount resulting in a huge error in your analysis. - Most taxing entities have some reduced tax programs that the current owner may be qualified for but you wouldn't and could end up taking a good deal and turning it into a cash loser.- Taxing entities re-evaluate property values on schedules.

@David Charles EdwardsI wanted to suggest caution regarding your annuity path.I’m just another landlord, so I’m just working from knowledge I have accrued over time.  

The more equity that you accrue through appreciation and making your monthly payments, the amount of cash that you have in the deal continues to go up.

Either way, she essentially just made $23k + the paydown that might’ve accrued while the tenant was making payments minus the two months which I think is 100% an ethical approach.

A broker who was supposed to be acting as a fiduciary profited by self dealing.Feels like the damages would accrue to the seller yea?

However the idea is you can accrue that debt at any moment so the lender has to assume the worst.

Since covid, I’m now accruing for 12 months reserve to be safe!