Because that seems to be a more important ratio as that reflects my cash returns?

Will, I agree with Nathans analysis of your deals but recommend a more conservative approach.

Just a quick reply while I read through the other posts in detail, but these two are still building capital and don't want to tie up money in a deal that for that time period.And one of the main reasons I'm considering this deal is because I work around 60 hours a week and unfortunately, at this juncture in my career, cannot set aside time to play a more active role in real estate (ie: wholesaling, looking for buyer/tenants, fix & flip).I'd consider myself a newbie investor looking for somewhat of a more passive role while I learn the ropes.

In general, it seems like areas with a large "turnover" (sales per neighborhood, for instance) would be a more favorable area to explore for flips.

Find a loan with a lower APR, and you will probably end up with a more reasonable closing cost amount.

The appraisal should give me a more accurate value.

A more likely case is that you'll have some vacancy, even if only a couple of weeks between tenants and you'll have some amount of maintenance or other expenses beyond taxes and insurance.

I'll do as suggested, keep an eye on the prop and see if the price comes down to a more favorable price.

Somehow they think that giving me a longer commitment and, perhaps, a more difficult time terminating their tenancy makes them more appealing as a tenant.

As wealth and influence of the civilized world spreads, more and more of this planet will fall into a more peaceful existence.