I've now accrued a list of 278 specific houses that meet my criteria with owners in pre-foreclosure, and I sent to 99 to try it out. 

@Kenny Dahill   out of curiosity, is there a maximum upfront rent you can ask?

I'll call out of curiosity, but I have no expectation.

While you can still go through the mechanics of calculating a CAP rate for a residential property it will be at best a curiosity and, at worst, dangerously misleading since it has no consideration in the transactional process.Charlie:  As a general practice, CAPEx is a below the line deduction (meaning it is not an operating expense, but comes out of NOI - typically after debt service).  

Out of curiosity from those folks doing this, what sort of vacancy rates are you seeing?

Out of curiosity- if you have money for a down payment, make a decent W2 income, and have only two mortgages, why are you shopping for a portfolio lender? 

I neither sell nor own whole life insurance; just pointing out a curiosity....

I would be gone extensively (for a month) and still accrue large bills for the time I was away, and 2.)

The lease states that I am responsible for all bills and to place in my name, however, no gas was in the residence at time of lease and for over 6mths a gas bill has been accruing that I could have dealt with easier with a small bill.  

@Bill Leonard  HORRIBLE deal  @Charlie Fitzgerald   return FAR to low..Gap funder should get 50% of upside minimum... not a measly 12% apr on accrued basisyou guys really need to take a step back.you should go see a local HML... check out Norris group in LA they take investor funds.Not sure if Charlie takes on investors on a one to one basis or through a PPM.. but someone with his experience is the bow you need to shoot your arrows.Again this is a HORRIBLE Risk/Reward scenario and the person advocating it has just hit the lottery if he or she can suck investors into that scenario.