@Robert Quiroz I think all of the factors you have listed might contribute.So I’m not going to comment on that but I am going to comment on an assumption you made.If 85% of rents are below market on deals you underwrite then those contract rents are probably THE market rent.You can’t just go based upon area median income to rent ratio.First off urban areas are oftentimes street by street, block by block.

Thinking about Italy or Sicily.  

Their are a few podcasts on seller financing and note investing I think those would teach you a-lot if this is really something you want to pursue.

Hi Tom,I love crunching numbers and thinking about returns. 

Just thinking out loud here. 

I think you are right that I can't rely on the sellers income statement and should focus more on comps. 

I agree that pricing a rental too high is a classic mistake than can make it sit, but don't you think encouraging landlords to rent quick will make them compromise on the vetting of the tenants?

We actually just had several go in on Livingston ave on the west side where I'd not normally think would be desirable, but they look great and really brought the block up.So I'm a huge fan personally from seeing them go up in my own area.  

My logic behind a area to hold is basically is in my zone of knowledge that means close in and in a  A-B area .BIG fish can have the whole USA in their  zone .Outside of my zone I am thinking flip it there are exceptions like all rules . 

I’m thinks just pay him his regular price for the job and throw him 5-10% finders/gc fee instead of making a 70/30 split or something like that.