Originally posted by @Bob Bowling: FOLKS Demand that that thread includes @J Scott's explanation of how $1, 000 financed on a $1, 000, 000 property  @ 15% results in a $50, 000 reduction of NOI!!!!   

Monthly Tax Savings:-$1,637.14Deduction Adjustment$437.10Net Monthly Expense:$4,510.95Monthly Principal Reduction:$1,152.66Adjusted Housing Expense:$3,358.30If they already itemize: Monthly Housing Expense:$5,710.99Est.

There is no magic pill out there that gives ultra returns and is ultra safe there are many investments along a SPECTRUM of risk and potential upside with varying degrees of potential tax benefits and deferment strategies. 

Doubtful with only one property for them to take a price reduction. 

One 1700 sq ft house cost me $18,000 to put back together and if I hires a contractor the cost would have been $32,000.Welcome to the world of real estate for single-family homes where the costs to maintain the properties is about 4 to 10 times more than maintaining properties with a large number of units.I used to let my property management companies get estimate for repairs and the never had a magic wand, magic pills, or magic bullets and I always got my own lower prices and better contractors when I did not want to or could not do the work.Get your own prices, but $12,000 sound about right for a ton of things that have to be done and then you need to worry about the extras that are not on the list.

I was looking for an 80% reduction in rates....I wound up getting a 40% reduction.  

However,  the stability and risk reduction as a newbie wasn't all bad. 

And the 11% return doesn't factor principle reduction, tax savings, appreciation. 

And it all has to do with local jobs and vacationers.If we pressume no vaccine will arrive before Q2 or Q3 2021 at the earliest and government imposed social distancing constraints combined with a reluctance by some folks to not want to re-engage in crowded activities - it all translates to a sizable reduction in visitors / revenue. 

You loseyour first year of $120k principal reduction, which adds compoundedover 9 years = $69k interest to the end of your loan.