Strictly offer monthly cash returns of 30%-50% and also offer a short term option of say 3-6 years where I will proceed to buyout his/ her portion of the property (in this scenrio 75K)and also potentially offer a % appreciation of the 75K (in this deal the investor walks away with monthly cashflow returns as well as a variable appreciation return on his principal amount)Just some thoughts I have in my head.

It is a lot harder than I thought it would be to be able to estimate repair costs given all the variables involved, but I am getting better every day and my contractor friend is very helpful in that he speaks aloud his mental process as he walks through a property and I take notes and ask a lot of questions, like, what if this room was twice the size?

Or possibly in larger multifamily properties that would include their own management so your income is truly passive.There are a lot of variable there.

In your instance there are only a few variables.

., and you add about another $10,000.Fixed Costs = $10,000Then comes the variable holding costs.

So many variables come into play with the usual and customary that limitations in operations may be prudent.

With larger tracts of farmland in the midwest yield can be good some years as the highest lease rates are when you are willing to accept variable payout as a participation on crop yield.

If you can weather these variable under worst case scenarios then why not?

I have all the variables except the rehab cost which I plan to get tomorrow.

Asking price is $60,000.Rent $850Tax/ins $125Pmt-$459.00(thats financing 60@ 4.5%fixed for 5 years on a 15 yr note)Profit $266Here are the variables-I think i could get it for 52-55K.