Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

However, if you are an out-of-state slumlord, you can now pass 100% of the financial and legal liability of maintaining a property onto some poor local.

Just be cautious of DTI (debt-to-income) ratios when qualifying for additional loans if you’re relying on projected STR income—most lenders require at least 12 months of rental history.

You need to take a look at your financial situation.

With the potential for a small financial loss on your end, litigation would certainly not be worth the hassle and expense.

I AM NOW USING MY 9-5 TO PAY OFF THE PRIVATE LENDER EVERY MONTH WE ARE SET BACK FINANCIALLY BUT THE future IS BRIGHT ! 

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

Prioritize your financial stability.

If so, invest.Then ask yourself if you're financially fit; can afford this property to make it 1.25 DSCR and have significant reserves for vacancy, capex, lead times, etc.

I thought I could just have a title company do some research and provide me with information about her property (Liens, unpaid debts etc.).