hi all, im wondering if any of you may be able to weigh in on a question i have. im considering an investment property, and want to try to gauge what is a reasonable/standard/expected "sale price-to-rental income" ratio. in short, the prop is currently generating 29k annually(3 unit prop), and will be roughly 200k+closing costs. about a 14.5% ROI. i have looked into other props in the neighborhood, and at the list price and rental prices, this seems about average, usually somewhere around 12-18%.i posed this question on another RE forum, and the only response i got was someone who thought that i could see a return on 200k at around 40k annually, and suggested i look outside my area. this seems high to me, but i dont really know what's "par for the course". fyi, i would estimate that FMV for this prop would be closer to 150k based on past sales, but there arent any 3-units in the area for sale, so its really hard to compare apples to apples with this particular place. thanks for any numbers you can throw out!

Are you using apple pie scented candles to set the mood?

I think people sometimes get confused and are comparing apples to oranges when considering buying real estate inside of a retirement account.

:D Usually signs for their daughter's lease for a 12-month stint and guarantees the payment and any damages incurred by the "apple of their eye."

Let's try Apple computers.

Agree with John, get quotes from a 2 or 3 lenders and compare the Good Faith Estate from each (preferaby on the same day if you can so your comparing apples to apples).

They have a real rivalry.That will work on building materials, but unfortunately, for finish materials, the two stores don't stock the same products, so getting an apples to apples comparison is very difficult.

Yes, I would aim for a net income after expenses to make it a more apple to apple comparison.

With a large open community, there is just as likely a chance that there are bad apples around as there is good ones.That said, the ratio of success stories to "scams" is overwhelmingly in the favor of the success story's favor.

It was a survey of 4,100 Executives, Business Writers, etc...Interesting to see Ebay on the list, along with Wal Mart, Apple, Toyota, Proctor and Gamble, and FedEx.