Check out NC GS 42 on all of the specific requirements for completion of the Option agreement, including font size requirement, as an illustration.

Just simple easy math.So lets look at this on the equity stripping model...again....simple math not showing totality, but just trying to illustrate....Purchase price $100,000. 

Hi Bob,I appreciate the tongue in cheek illustration, but some context around that would be helpful.

@Tracy MungerPurchase price on a 3/1 = $47,900Rent = $900 (might be low, but again i’m illustrating the difference in the numbers)Vacancy @ 10%:$90.00Repairs @ 10%:$90.00CapEx @ 10%: $90.00Water & Sewer:$75.00Insurance: $70.00Management @ 7%:$63.00P&I: $328.15Property Taxes:$138.67Total operating expenses = $616.67$616.67 + $328.15 = $944.81 monthly expenses$944.81 - $900= -$44.81 negative cash flow50% rule is $450 + $328.15 = $778.15$900 - $778.15= $121.85 Positive cash flowThe 2% rule says I’m getting 1.79%I realize I’m factoring water in there at $75, which the 50% rule likely does not take into account.

Chart 1.1 – Total Investment Overview illustrates visually how much interest your investment will generate by comparison.

I also deleted some names, addresses and content to maintain my clients privacy (who has given me permission to use this example for illustrations): __________________Thanks for getting the property information to me quickly.

I was recently listening to the Old Dawgs podcast (End of Dec 2019) about an IT engineer like myself that took $50k in home equity and the husband/wife team turned it into $54M worth of rental properties in Texas after 4 years (I know this rare, but illustrates the art of the possible).

To illustrate this, I’ll use my own: 3BR, STR.

And it turns out that this is a great opportunity to illustrate something interesting about DIY.

"anti-abuse rule" and illustrated it with this example (link to the Regs below):...Example 11.