Thank you all for the feedback. I ran an initial rental income calculation at asking price of 275,000 with very safe rental income values. As I mentioned it is a live in opportunity as I will be pursuing the FHA loan. Also wanted to include the statement from my real estate agent to get a feel for it from all of you.
"Using the 50% rule it'll be difficult to be cash flow positive, even if you were at $200,000-$225,000 for purchase price you'd still be at a loss... But I know it's a very conservative "estimate" when running your numbers. Early on as an investor you'll almost always be more at a loss, on a monthly basis, unless you have cash to throw around but most people don't"
I don't think he is trying to manipulate me in any way, but also I know this is a patience game and it could take a while to find a property that fits my goals. I would ultimately like to have this property management outsourced so I am planning for that scenario down the road. I've attached my report results for more detailed information. I've been able to manipulate the data in some way to get it to positively cash flow (rental incomes higher & lower purchase price), but I guess the question is how do I know what is too aggressive when it comes to adjusting prices during the analysis phase of a rental property?
