Metrics and local zoning rules and regulation awareness is the key.  

Here are the pros as i see it: easy (no purchase necessary, you know the property), likely prop 13 property tax discount, possibly below current rate loan.  

Told him I have a rule never east anything out of a frig with the electric off for 6 years!

Quote from @Glen Wiley: I am not a big fan of those rules - I think they are too simplistic.What will your interest rate be?

Hi ALL,Can anyone recommend a easy to use property management tool that we can use, so far, we have 4 rentals and growing, We will like to have better control of the information and have a easy system for tenants to pay rent.As always, thank you for your input!!

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. 

Easy value add because my girlfriend is a professional photographer. 

That basically meets the 1% rule.

For example, in the New York area, especially in some hyped-up fringe neighborhoods (like certain areas of the Bronx, Queens, or Staten Island), finding a "bargain" seems easy.

To update my December 4 comment: The filing requirement is back on as of December 23, after an appellate court ruling.