However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

To make up the difference of the total price, I used seller credits, lines of credit, and second mortages on other properties. 

This website is a great starting point to find out what areas are like https://www.areavibes.com/It gives you a total livability score and from there you can narrow down you search. 

Ask one additional question you "forgot" to ask at the meeting.Scan and toss any relevant business cards you picked up.Never feel pressured at these meetings.

Make no mistake it isn’t quick or especially comfortable but it can definitely be profitable.As for the rent a room thing in most locales I have to wonder if the additional rent is worth the hassles of dealing with the increased time and liability of multiple tenants in one property but that’s a totally different conversation. 

TERMS- Deal Type: Seller Finance- List Price: $580,000- Purchase Price: $780,000- Seller Carryback: $693,000- Total Entry: $100,000 Breakdown: Assignment: $13,000 Down: $87,000- PITI: $2,657 Breakdown: Principal & Interest:: $2,000 Taxes: $464Insurance: $193- Rent: $5,250 ($750-800 per unit)- Amortization Years: 28.88- Interest rate: 0%- HOA: NONE- Balloon: NONE- EMD: $5,500- COE: Feb 12, 2025- Occupancy: Occupied, Occupants staying post closing- Title company: PROPERTY DETAILS:MULIT-FAMILY7 Units - 2B/1B per unit- Living sqft: 5,200- Year Built: 1940- Age of Roof: 1- Age of HVAC: New- Age of Water heater: New- Condition of Electrical: Good working condition- Condition of Plumbing: Good working condition

I am glad I stumbled upon this, as I am an avid outdoorsman and own 2 rural properties totally 30 acres, mostly forested.

Would totally like to expand upon it.

Also, there is usually a "hammer fee" which is a % of the total purchase price to be paid to the auction house by the BUYER.Again, you can get good deals this way and you actually can tour the property beforehand so you generally know what you're getting into.

Total Investment + Down payment of 69,000 + 20,000 of updates = $89,000.Hope this helps.