@Rebecca Olson haven't got the hang of the tagging on this site yet for some reason...nevertheless, I was listening to a podcast yesterday BiggerPockets Podcast 001 : Flipping Houses with Marty Boardman and he illustrates in it how he was able to build quite a portfolio (8Mil$) and had it pulled out from under him.

.• Landlord friendly laws and taxes.Below is an illustration of the process I would follow:The first decision is location which may not be where you live.

I will try to illustrate this using the example you provided.After rehab, the home will sell for $120,000.

They have great illustrations and are just simple and to the point.

To illustrate my point, I'll tell you a story I heard called, Acres of Diamonds.  

I created a spreadsheet to calculate the above numbers which is illustrated below.

http://dominion-properties.com/Development/SageOnJackson/ Interesting project ... the building envelope is not in the same league as a Passivhaus or Minergie-P, but the project does illustrate the different approach of LEEDs certification which allows you to trade off a certain number of points in one category (envelope rightness and insulation) by making them up in another (use of PV arrays and green roofs).

for me if I called you and you called back a week later I would not know who you are and I would dismiss you as not carrying enough about me to call me back within 24 hours.Jay, that is just an example for illustration purposes.  

In that case, the ROI with the above rules is 7.1% if the rules stay true.Finally, the $100 / door goal:In this case, I plugged in rent, expenses at 50%, and the static profit of $100 per door to see if there was a price point that came out with a great ROI.Of course, the rent at $500 per month provides 12.9% ROI which actually comes in at a 1.3% rule.On rents of $1,000 per month, your purchase price would need to follow along the 1% rule with a purchase of $99,349 which would yield a 4.8% return.So the questions comes to mind after analyzing this, if these rules are generally accepted as rules, are people really getting wealthy (not counting on appreciation) from these type of returns as illustrated above?

If they previously chose to pay $22/mo in fees on top of the rent, then they're clearly not that price sensitive at $800/mo.More than anything else, I'm merely trying to illustrate the true cost of rent collection methods that charge transaction fees on the tenant.