You buy wrong and after a few years many sell at a loss and quit.

We can take the same line of reasoning when Analyzing other Risk Hazards such as loss of income; loss of property ; (house loses entire value) ; In addition , I think we need to look at other non cash returns when considering leveraging versus non leveraging, as some of Leveraging benefits don’t show up on the cash flow line Total return Calculate total return for scenario sake – assume 25% tax bracket and 5% appreciation Option 1 Cash 2250 Month * 12 months 27K a year 27K / 300 K = 9% ConC return (as stated) Other returns Equity build up = $0 (already %100) Tax savings (assume 40 K tax basis , 27.5 year amortization ) $1450 per year DEPR allowance * 6 houses = $8700 $8700 DA * .25 (tax rate) = $2175 Appreciation Appreciation 5% = 50,000* .05 = $2500 year appreciation 2500 * 6 (houses) = $ 15000 Total return = Cash + equity + Taxsavings + Appr = 27000+0+2175+15000 = $44175 4175/300000 = 14.71 total return Ending Equity => Value – Liability = ($300K *1.05) – (0) = $315K Option 2 Cash 2880 Month * 12 months = $ 34,560 a year 34.45K / 300 K = 11.52% CoC return (as stated) Other returns Equity build up Using financing model above (25K financed at 5% over 30 years ) – yields $360 equity build up in year 1 $360*12 houses = $4320 Equity build up Tax savings (assume 40 K tax basis , 27.5 year amortization ) $1450 per year DEPR allowance * 12 houses = $17400 $17400 DA * .25 (tax rate) = $4350 Appreciation Appreciation 5% = 50,000* .05 = $2500 year appreciation 2500 * 12 (houses) = $ 30000 Total return = Cash + equity+Taxsavings+ Appr = 34,560 + 4320 + 4350 + 30000 = $73,320 73,320/300000 = 24.41 total return Therefore you get more sizeable return on your money for assuming the probability of more risk, even if the impact is lessened

If someone has 1 million and invest 100k and loses 50k and sells at a loss then they can easily recoup that 50,000 while they have the 950k.

Only had a small loss, but even a small loss is big compared to the returns I was expecting for that period of time.I use IRA money for this lending. 

The GOOD thing about the tree is that it's beautiful, shades the house and most of the backyard. 

Here would be my analysis of your property (monthly cash flow analysis): Purchase Price: $150,000 Gross Potential Rent: $1800/monthProperty Taxes: $324/monthInsurance Estimate: $60/monthTrash/Sewage from your estimate: $105/monthMaintenance Reserves: 15% or $270/monthVacancy Loss: 8% or $150/monthCash Flow Before Mortgage Expenses: $891/monthYou mentioned you wanted to use a cosigner on an FHA loan.

Total cost to you = $3300.4 - It takes one month to fix roof and fill vacancy, so you have one month of expenses to cover = $700.5 - Total needed in month 13 = $4000...and you have accumulated only $2160, and show a loss of $1840. 

Luckily they were all small risks and so the loss wasn’t too severe.

So it has be categorized as a total loss. 

WEAR A RESPIRATOR WITH ORGANIC VAPOR CARTRIDGES.The new stuff will usually blend well enough into the old stuff to pass muster, especially on a parquet floor with all the variations in shading.