We’d like to run through an example for simplicity purposes. If we use a $100,000 property in the Midwest where you're putting 20% down ($20,000 down), you're probably going to be experiencing a net cash flow of anywhere from $3,000-$4,000 annually. This is after all expenses and debt service are taken out, which would yield you a 15-20% cash-on-cash return. That's not considering appreciation, debt reduction as a tenant pays a home loan down, your tax benefits, and depreciation. All those things combined increase your ROI dramatically over time for every property you acquire and with each year you own the home.