I don't see seasoned investors buying these types of properties for the most part.So then in my mind these newer investors are buying properties that have minimal returns because they do not have the experience to properly analyze a purchase price.If you are buying TURN KEY you are paying for it.If you want some easy don't expect to get rich off of it.These new investors in my opinion would be better off handing the money over to a seasoned investor who will purchase properly and give them the returns wanted WITHOUT the headache of land lording or overpaying.Again I have never used a turn key company.I just know based on many accounts of others buying through them that many times it does not work in their favor.I have yet to see an independant third party that bought post everywhere that they are cash flowing great and would use turn key again.Instead it's nightmare after nightmare.If I have to deal with a properties nightmares I will do the work and reap ALL the forced equity I wring out of it.Not overpay for lipstick and then be fixing problem after problem.Before you buy in that area go to the eviction court and see how many cases are processing a month?

That is a "crushing it" deal you landed.With section 8 paying you will ride the government gravy train.Paul you haven't said if you will be buying all cash.I don't like the fact the house is from 1973.You have to worry about lead based paint and the EPA instead of being built in the later years.You have to worry they just put lipstick on it.Remember many of these companies do not care about you they just want the check.A connection should be formed with someone local to the area wanting to form a relationship with you that will last generations and help you get into good deals where you will not be into trouble down the road.I can tell you just 3 to 4 years ago getting houses for these prices was unheard of.It will not last forever.

My goal here is to buy this property at around $65000, and I believe with some lipstick, I can rent it out for $900 a month.

If you bump into the need for more complex formulas, like IRR(), you're probably moving from analysis to putting lipstick on a pig.

This theoretical "passive loss offsetting other income" idea is often used to slap some lipstick on a pig rental.

The more market info you can show the better he is likely to feel about it.Are you looking for lipstick deals or rehabs?

They bought it last year for $1.9M, put some lipsticks on that pig and now want $3M for it.

We found the focus was on immediate 'number gratification' by lip sticking empty units, getting warm bodies in units, cannibalizing sacrificed empty units, etc.

Just be sure it is not a lipstick on a pig remodel.

A good deal doesn't need any IRR or FLEA lipstick to make it look good.