Or do you figure a sale price based on market cap rate but with the property tax expense you pay currently?

Not sure if we'll do more, but it surely won't ever be high volume...so expensive or highly customizable solutions don't make a lot of sense.

We've owned this property for 15 years and only once had an issue with a tenant who claimed they weren't informed that it was oil and threatened to sue due to the added expense.

Inspections may cost more upfront, but they can save you from significant headaches and unexpected expenses down the road.Negotiate Hard: Use inspection findings as leverage.If the HVAC is near the end of its life, negotiate a credit for its replacement.If the cast iron plumbing is deteriorating and needs replacement, ask for a credit as well.Sellers often prefer negotiating credits over doing the work themselves.To give you an example: I was once under contract for an old house priced at $170,000.

If I assume a 2% rate of rental increase for 15 years and 50% rule for expense, we will have $7.5K/month net-profits in 15 years.- Split 50:50 between real-estate & stock market. 

It will also be more expensive than just looking into a line of credit with a local bank. 

For most people, owning their own home and house hacking is typically the best way to get started building some equity, enjoying tax benefits, understanding real estate, and reducing their monthly housing expenses, but it really does vary by person and what they are trying to do.

He could get hit with a significant expense and not have the funds to pay for it because he hasn't collected enough rent income.

Deduct Selling Expenses: Costs associated with selling the property, such as real estate commissions, legal fees, and advertising expenses, can be deducted from your sales price, thereby reducing your taxable gain.9.

 $12,000 in gross income, less $2,400 in expenses = $9,600 yearly return$9,600/$100,000 = 9.6% cash on cash returnFinanced:$20,000 down - financing $80,000 at 7%Monthly payment (P&I for 30 years) $532With Taxes & Insurance $732/monthNet income: $1000 - $732 = $268/month * 12 months = $3,212/year$3,212 / $20,000 = 16.08% Cash on Cash returnI would also point out that interest payments aren't really a negative on the financing side, because your tenant pays all the interest.