Free and Clear owners

[Mike Burgess]

Hey guys, a newbie question for ya: I've been mailing to absentee owners in my county with some pretty great response rates. I'm hearing from a surprising number of free and clear owners and I'm wondering if these leads should be handled differently than those with financing on the property. For example, if a free and clear absentee owner calls about a property that is in good shape and is currently rented, do you still go for the 65% less assignment MAO formula, or, since this property would sell to a landlord, should my offer be based
purely on the potential cash flow (i.e. 50% and 2% rules)?