(or better yet, both)If it looks like your probable income will cover all expenses and debt service, you probably have a winner.

It is difficult to refinance a property with a rental loan that doesn't cashflow.  172.5k loan amount - 30Y fixed 4k in annual taxes & Insurance 8% Rate (higher LTV = higher rate)Monthly PITI Payment = $1,599.07Overall, this deal is not a winner.

And when you look at it that way, RE is still the clear winner. 

Not quite a new member as I've been lurking these forums for years, finally deciding to get serious and figured doing the "New Member Introduction" post would be a good step.Briefly about me:  I'm currently working as a merchant mariner (3rd Mate) and I travel for work about half the year, looking to get into real estate investing to supplement my income and begin building a portfolio during the half of the year when I am home.  

If it turns out to be slightly better or worse no matter this is a winner and you should get it done ASAP.

Adding...turn over and vacancy seem to be the big topics that BP doesn't discuss.SURE a C- property looks like a winner on paper. $800/mo for $40k is 2% rule, that's crazy!!!

In the mean time I would do a subject to with this winner you have and flip it even if you make 10k on it.

When I was looked for flip houses, I used to get calls from Realtors (I was on a list) saying be at this address at 3pm, you and 30 other people can look for 1 hour and then submit 'Best and Final' right on the spot.It does/did create a sense of urgency....the 'winners' of these bids usually overpaid by a lot and were inexperienced newbie wanna-be flippers......

The market moved and made this one a winner.

Individual that is still physically fit to climb up, dwn, around, between properties looking through 22+ yrs of experiences in construction from residential to marine, off on shore, commercial etc.