Seeing some inappropriate clause does more harm than good, the guy in the rob is either laughing under his breath or is getting ticked at the novice goings on.

In the heartland, rent yields are so high on the types of properties that Matt describes that you can easily structure the buyer's LC payment to be quite a bit less than the rent would be, even with a sales price that is 50-100% more than you just recently spent to acquire the property, with a rate of 9-10%, and with a fully amortizing 10-15 year note.Most folks that do this that I'm aware of do little or no work to the property beyond very basic habitability standard, they are sold as moderate fixer-uppers to folks that have the skills or connections to make the necessary repairs and updates.

I have developed a habit of purchasing homes in the city I move to and when I depart I rent the home out using a property manager.

I assume the appraisal is only based on the "official" home.I would be at least moderately concerned that you have space being leased out for habitation purposes that is not on the city and tax assesssor's radar.

I rent market rent and keep it there and if something happens in the local economy where the market rent still holds but is having some fluctuation due to a amajor source of local industry failing or something else; and that tenant stays, then I keep it the same if an annual increase would harm the investment or hurt the vacancy rating.

No real harm in that.

It doesn't scale to 250-500K houses.Personally I think BP promoting the 2% rule does more harm than good in that it scares off a lot of new investors that cannot find a house that meets the criteria in their market.

The article I co-wrote with him can be found by following this link:http://www.biggerpockets.com/blogs/2997/blog_posts/22522-8-habits-of-highly-effective-inner-city-landlords

Steven Johnson, just tell them that they can continue to market the property themselves and if they get another buyer before you get your tenant, you'll part ways as friends no harm no foul.

They either have no idea or don't care about the damage they cause, the problems they set up between others and worse, the financial harm caused.