It could work, but I would urge you to take a more critical look at all the numbers before you decide.

Likewise, he could sign a more traditional purchase and sales agreement and then do a double close with transactional funding.

It will be overkill for a garage but you mentioned that it was a more owner occupied neighborhood and that could be a huge selling feature for a buyer to have a garage that they can have a properly powered shop in.

I've found that a more reasonable way is taking the yearly net income you can expect (not counting the debt service) and dividing that by 10% or whatever return YOU require on your investments.

As you can see for this single family house, there are 3 price estimates which are quite different from each other:http://www.ziprealty.com/property/2714-REX-AVE-BAKERSFIELD-CA-93304/4754697/detailZillow estimates it at 96k, homegain at 104 and eppraisal at 71kFirst and foremost I want to know which one is a more reliable estimate.

Here is a more precise breakdown of the income/expenses.

My guess is it would be lower for a town house, but a lot of people on BP go by the 50% rule - that is, 50% of your rental income will be required for upkeep and maintenance of the property.At this point, I'll let a more experienced poster chime in and verifty all the points I'm making are accurate.Kyle

I was just doing my usual due diligence, market researchthere was this one MONSTER of a commercial multi-unit that was beyond our price range (6 tenant offices rental).but we thought it was way over priced. we thought it was worth 600k (old bldg), listed 980knet gross income was 80k/yr, it already has 80%-90% occupancywe were thinking an offer of 700kbut we thought that was too low an offer, and financing could happen if we tried hard enough.we ended up buying a few building down at a more affordable 150k.today I remembered the building.... chked in on loopnet. and it was still there!!!!

I am happier building investments a more hands off way.The main difference is economies of scale.

I would like to find out a more specific definition / classification of what exactly constitutes a multi-family dwelling.The terms dup-lex, trip-lex, quad-plex, 5-unit +, apartments, etc. seem to wear many different coats.For example, I would see a building like this and when I search on the county's zoning map it would be defined along the lines of a "low-rise" apartment: I see many small units combined into one single building with various access points.However, I also see other locations / neighborhoods that are filled with only SFR's and straight-forward duplexes.