Just to ensure we're not letting anti-PMI bigotry in the way of being rational, compare the P&I rate with PMI rolled in, to the P&I+PMI rate without PMI rolled in, both at 90% LTV.

Unfortunately there is not cashflow from the operating budget because the rent to value rations are so low.

I personally think too many people just look for the down payment and then rationalize how their property is special and won’t need reserves.

Combined with peeps for have expiring 5 Years Arms, would come under tremendous pressure to sell with higher interest rates next year.Wouldn't this cause a correction in home prices, if that market was rational???

.- Rational seller will view it as a $500k offer.- We said above that you're getting a good deal, so appraising at $510k shouldn't be an issue.Appraiser must review contract to confirm that this isn't unusual for the area.

If you are incapable of separating your emotions from a material object you will be incapable of making a logical rational decision.Personal homes are a liability, sell it, keep it, what ever you choose does not matter if it no longer a investment.  

That way at least you know your estimates are rational and fairly close.

Your numbers do not leave a lot of room for error.Regarding your question about rent rations, you can find deals above 1% everywhere in Michigan, not just in C and D class neighborhoods.

Planning to acquire my rental property that seems to only need minor renovations to the tune of 20k and have that feeling others have talked about that something isn't quite right. A neighbor told me and the realtor w...

I have a client who refuses to rationalize buying his own home because he hates property taxes so much.