This does not include any capital improvements.You have a great annual CPI for LA 2.8% as of last month.

You will be in prime position to capitalize on something.

There's capital gain tax, SS tax, Medicare tax (and possibly more I don't know about.

The township seems to be "on board" with adding that 3rd residential unit, but the project needs a significant amount of capital (exterior work) to get the building up to acceptable standards.

I have definitely considered doing this myself, but will probably just immediately sell my first few deals to get access to capital to get into larger deals, or just more single-families simultaneously.

myself and partner are looking to deploy some capital over the next 3-5 years. are any investors here on BP seeing consistently seeing 12%+ cash on cash returns from single family homes used for rentals with 20% down?

But I left 12 months later with an entire business now running well with great local staff I had met on the streets and with a million dollars capital I had made in that year.This is going to sound insulting which is not my intention but my overall impression of most US people trying to make a go of this business is that they were fundamentally lazy.

@Elias Betondo When looking at those comps, pay attention to the CAP.

I've c/p'd the gist of the numbers below: Property Specific Inputs Offer Price $ 90,000.00 After Repair Value $ 90,000.00 Rehab/Repair Costs $ 5,000.00 Annual Tax $ 2,315.00 Monthly Insurance $ 100.00  Cash Needed Acquisition Costs $ 26,720.00   Holding Costs $ 692.74   Refinance Costs $ -   Total Cash Needed $ 27,412.74           Rental Income Gross Rental Income 1.94% $ 1,750.00 Operating Cost Assumptions Vacancy Rate 8.0% $ 140.00 Maintenance 9.0% $ 157.50 Capital Expenditures 9.0% $ 157.50 Property Management 10.0% $ 175.00 Total 36.0% $ 630.00 Owner Paid Utilities Electric/Gas ($/month) 8.6% $ 150.00 Water/Sewer ($/month) 11.4% $ 200.00 Trash ($/month) 0.0% $ - Total 20.0% $ 350.00         Cash Flow Calculations   PITI $ 692.74   NOI $ 770.00   Monthly Cash Flow $ 77.26 Net Cash for Deal $ (27,412.74)   Cash on Cash Return 3.38%

Make sure that you are well capitalized and the you are being conservative in your underwriting (by conservative, I mean actually looking at historical data to back you assumptions).