Glad they took it, because I would have gone to $80k.Asking $84,500Offer $77,500Closing Costs (est) = $300020% down - $15,500$62k mortgage at 4.875% = $327Taxes = $180/moIns = $40/moPM = 8%, $96Reserves = 25%, $300 - did this to meet 50% ruleRent Est = $1200Cash Flow = $257/moNOI = $3083ROI = 16.6%

But #2 aside from the good margins I think going by a rule like the .70% rule really doesn't give you a very accurate measure of what you are doing unless you REALLY understand what it is that you are accounting for.

The 50% rule (expenses = 50% of gross scheduled rent, expenses mean actual operating expenses, capital expenses, and vacancy) is discussed in several other recent posts, so I would rather not take up that subject here.The 2% rule (rent must be 2% of the purchase price) has several assumptions.

From City feet.com there seems to be some great deals (some 2% rulers) based on what little info I could get from rentometer.com.But how is the rental demand look in the area?

As the areas that are still trapped (by religion, ruler, or geography) continue to become educated and assimilated, you will see peace continue to spread.

It gives you a basic idea of what might be a good price, but you have to dig deeper from there.You can look at the 1% or 2% rule, really it's the same thing as gross rents multiplier just a different way to look at the number.Most feel that if you can get 2% of the purchase price in rent/month you are going to make money.

Some examples I don't understand are;2% rule - Rent is my area for a 2bdrm, 2 bathroom condo/house is about $2,000.

Not just "herp derp, 2% rule"/rant

As a general rule, real estate holding LLCs should be created in the same state as the property.

As a general rule, real estate holding entities should be created in the same state as the property.