i.e. longer than normal vacancy, bad tenant screening, poor maintenance, skipped rent payments, etc.There could be a handful of reasons why it lost it's ability to cash flow.

It's still early but we're expecting tenants to use the service for 9-18 months, and about 45% to also order the extra reporting of their previous rent payments which costs ~$20-25.

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.

This could increase interest rate and or down payment.2.

Quote from @Efrain Flores: Quote from @Tim Delaney: Based on rent of $1500-1600 and mortgage payment of $1700-1800 which doesn’t even include maintenance, management or capex it doesn’t seem to make any sense to keep it as a rental.

I would keep the property and eventually refi to help get your payment down lower.

We were discussing options for payment as we don’t have a lot of capital at the moment, however they have a property that has a bit of equity we could tap into, but they already have a favorable interest rate.

Or like your plan use it all as a down payment on a much larger property.  4.

How much are you short for the down payment?

Think about it, if you are buying something at a 5% cap rate, but interest rates are 6%, the debt payment exceeds the income.