I'm hoping BP can help us and see if we're missing or overlooking anything.As is illustrated below, purchase price is $180K and the house needs $55K in repairs.

I'm just using them to illustrate a point.)tThe only place you can get comps (as far as I know) is via MLS.

Then use that value in your PV calculation as Dion illustrates to find the purchase price based on your desired yield.

Below is an illustration showing the effects of urban sprawl over time on an investment property.As to other long term factors:Las Vegas population trend.Las Vegas per-capita income trend.Las Vegas investments and the 2008 market crash - I can't link directly to our case study so please see my profile and click on the link titled: "Case Study - Real Estate Investment and the Las Vegas 2008 Market Crash"Comparing Properties In Different LocationsWhen you compare return in different locations you need to consider all the major recurring cost factors plus rehab cost, rehab risk and long term maintenance cots.

Look up Ray Dalio and the economic machine, it's a fantastic illustration of credit, business and debt cycle 

Principal pay down.So let's go back to the illustration of buying a $100k house and paying it off, cash flow of $10k per year (your example said $1k/mo which equals $12k/year, but let's go with $10k for ease of calculation).

A duplex is an easy illustration.  

It is going no where.Ironically, this is an illustration on why first liens do not come standard with a subordination clause or substitution clause.  

If for any reason you are ever ineligible for that special assessment, you are going to get absolutely CRUSHED by property taxes and lose any and all cashflow from this property.That being said, I just ran some estimated numbers based on what I know from my experiences with my Mount Pleasant rental - I don't think these should be too far off...It's best to be conservative with your rental $ estimate when running these numbers, but for the sake of illustration, let's take the $1350 figure & break it down monthly:Mortgage = $900 10% Mgmt fee = $135Property Tax = $63 (I used a tax bill of $750 annually - you'd know this figure better than me)Insurance = $67 (This is pure guesstimation.

So variations here could be much worse than illustrated here.When we look at the combined investments in reality you do not "make" any money from the loan investment.  100% of those payments are being allocated to pay down the mortgage.