We have a rental property that is now vacant in a C-class area. Monthly mortgage amount is $780/month (PITI).  Market rent is $1,300/month. Loan amount left is $132,000.If we list it, we can sell at $205k and assuming...

The math now is  1,460*12/85,000 = 21% yield. 

Let's just do some fun math.

@Blisseth Sy your math isn’t correct.

That’s not a political or even moral arguement just basic math, in theory if zoning allows it and we get more skilled immgration at least economic theory suggest they should be able to build more houses per person that they consume.

Also, do the math - does demoing your current house + paying off the current mortgage immediately, then getting a construction loan make sense?

I strongly favor regular price reductions until leased out.Most people make the mistake of letting it sit too long when simple math points to that fact that 2 additional weeks of vacancy at $1000 per month equals $500.

So, let’s just estimate and do the math $600k potential as Kris keeps spewing -$175 from the one deal her team (main selling point of her course are her “trained teams”) messed up we are at $425 - $200k roughly I’ve decreased sales prices we are at $225k - about $150 estimate in dead deals she included (just estimating I didn’t go confirm this) we are at $75k - $50k in mailers, subscriptions etc we are at $25k -$30k I paid for her course I’m NEGATIVE $5,000 STILL and that doesn’t include her “50/50 split”.

While optimizing taxes, ROI, ROE, IRR, and all the other wiz bang math is great...is that the tail wagging the dog?

I do the math to figure out these ratios for each applicant which is harder than you think sometimes with people working multiple gig type jobs with inconsistent income because then you also need their tax return to calculate factor their expenses in.