The loan amount is a percentage of the home's value determined by the age of the youngest homeowner.

The property is in an area we work with and the current asking price is comparable to current ARV prices.He and his wife are 78 years old and do not want to hold a long-term mortgage due to their age.

The insurance people were saying any loss would be figured by it's age, which was known, and it's size, model.

There are some other considerations though. ie age and condition of the property etc..

Just want some age old wisdom from all the heavy hitting investors.

Rent doesn't usually associate with square footage...it's more a function of number of beds/baths/common areas, as well as a function of amenities and condition of home.So, start calling FOR RENT signs of houses that are similar to yours in terms of rooms, condition, age, and amenities to get an idea of what others are asking (keep in mind that they haven't rented at that price, but it's a starting point).As for taxes and insurance, the local taxing authority can tell you the annual property taxes,and an insurance agent can give you an estimate/quote pretty easily.

(Don't think about profiting from the income at this point but enough to cover all your cost, contingencies, repairs, etc)By the time you retire, assuming you retire at the common age, that house will be free and clear for you to either enjoy living in it, or to sell it and live where you want to live.

If anybody can suggest (or delete) other points I'd be grateful.This is really for 1-4 unit residential properties.Pre-Buy Checklist1) Demographics, ages, percentage of renters to home owners, incomes, type of jobs, type of renters2) Job centers, taxes, services, fiscal solvency, construction, renovation, land use laws, civic pride, gentrification3) Sales and rents trends, cap rates 4) Transportation, freeways, congestion, public5) Vacancy rates6) Property taxes, utilities increases, growth corridors, nearby office construction, replacement costs compare to new construction, 7) Growth in jobs, economic base, and population8) Weather patterns, natural disasters9) Building: architectural styles, materials, purpose built or conversions10) Established rental management companiesPurchase Checklist1) Inspections: property inspector, structural engineer, pest control expert2) seller disclosure statement, 3) statement of income and expenses, sellers IRS Schedule E4) Lot size and value5) Verify code compliance6) deferred maintenance7) space, view, natural light, noise8) Personal property & fixtures9) All co-owners present10) Site boundaries 11) Improvements 12) Clear title13) Deposit conditions14) Condition of property15) Escrow credit for repairs, 16) pre-closing casualty losses 17) Settlement costs18) Dates of closing and possession19) Tenants leases and rental info and their property20) Contingency clauses, environ, hazards21) Insurance22) Read all leases, check for rents levels, concessions (one month free rent etc), who pays utilities, yard care, snow removal, furniture and appliances, duration of leases, security deposits. 23) Ask tenants to confirm their terms of lease.

This is has been done for ages.

The recent comps are the same age, smaller (600 square feet), and sold for $500,000. based on price per square foot this place should be worth about $670,000.