Purchase price: $28,500 Cash invested: $28,500 Sale price: $80,000 Bought and sold a 3b/1b SFR with Owner Financing.

., 2bd/2ba single-family homes) consistently perform well.Building on this, you can also analyze current rental rates relative to nearby "for sale" comps to estimate ROI.

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

One challenge that may arise during the sale process involves third-party property management.

This low inventory will continue to pressure up rents.The sales market is (finally) showing a seasonal slowdown.Sales - Months of SupplyThere are about 1.8 months of supply for our target property profile.

I want to attend, but every time I go I find it to be all sales and no value.

I'm not sure if I want to do co-hosting though.A good realtor well-versed in STR sales and management can get you unstuck. 

I have to decide if im going to use a new injection of capital from the sale of my primary residence to:1) Hold in treasury bills at 4.5 percent until I find another property to purchase2) Pay off one of two existing mortgages, one at 3.75 percent and another at 4.5 percent3) Just find something to buy that beats either of those percentages on paper and be done with it4) Possibly loan out some hard money/broker it to a friend to allocateIts never an easy decision, but its a good problem to have.

In our case we tripled our deal flow when we started a program of direct email to mortgage brokers, real estate brokers, and real estate investors who could bring us either mortgage notes for sale or new loan opportunities for loans not qualifying for commercial financing.  

However, this does not impact the sale proceeds.This post does not create a CPA-Client relationship.