Old thread, but here's some new information:(from irs.gov) "Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.

All my properties cash flow, but I still deal with my tenants paying late and having issues in that department, Im in the black but struggling to stay there.I certainly wouldn't increase your debt on these 4 properties if you're struggling to stay in the black.If you want a better evaluation of your situation, then post the total monthly gross rent for the properties and the total of your mortgage payments.Good Luck,Mike

Initially, I was taking the locks back to Home Depot and having an employee flip the cylinder for me.

Both bathrooms were basically unusable (extremely gross), and the house was from a hoarder so it was pretty gross in almost every room.

Scott who's analysis spreadsheet mine is based off of.The numbers used are entirely based off the pro forma:Asking Price (not offer price): $233,000Down Payment: $58,250 (25%)Improvments: $6,000Closing Costs: $4,500Total Cash Invested: $68,750Total Rent: $3,525Gross Income (less vacancies): $3,232Expenses: $17,804 (50.39%)(includes 11% PM, maintenance at 10% of gross income)NOI $20,985Debt Service: $10,625 ($175,750 mortgage at 4.5% for 30 years)Cash Flow (with PM): $10,360Cash Flow (without PM): $14,627Cash on Cash (with PM): 15.07%.Cash on Cash (without PM): 25.59%Cap Rate (with PM): 9.01%Cap Rate (without PM): 10.84%I'd like to do the management on my first few properties to learn, however my minimum criteria has to work with a PM as I will eventually get one.My conclusion is that on paper this property is quite a good one considering its cash flow, cash on cash, and cap rate - especially when considering this is based off the asking price.I'd love to hear your thoughts.Thank you.Will

Steve,I have never worked for New Western but I have relationships with some of their current and ex-employees.

Also, if a building is of he size that it needs a resident manager, can I have a management company take care of that, so I can avoid the hassle of hiring actual W2 employees??

For instance, in CA if you don't have any employees then you are not required to carry worker's comp.

You might consider buying a mortgage company from an owner if you're swimming in cash, let the employees teach you while you manage the financial end.A degree in finance will be helpful, but it does not prepare you for lending.

Found this article by Bill Gross of PIMCO.