They’ll be paying 40% of market rent, you’ll be paying them $3,100/mo to “be good tenants” and you’ll be out $261,000 in rent. 4) think about the “lovely good tenant family” that you are denying a place to live for $1,600/mo (20% under market) because you want this other family to live there instead.5) Try this exercise.

Potential investors, on the other hand, should exercise caution, focusing on due diligence and seeking opportunities in sectors of the market that show resilience or potential for growth.The Road AheadThe current trend in foreclosures is a pivotal moment for the U.S.

Evaluate your position and exercise your right to make a choice that suits your over all needs. 

Subject to is a similar half-truth: “If the bank exercises their right to enforce the due on sale clause, just deed the property back to the seller and use an executory contract: contract for deed, lease option, land contract instead.”

Among the seasoned investors who have replied to this thread who have used the methods I describe, we have dealt with literally hundreds of appraisers between us.You say one thing and the hundreds of appraisers who we've collectively dealt with have indicated another.So, I leave it as an exercise to the reader to determine if they want to listen to you (a single appraiser) or if they want to listen to the collective experience of the investors here who have worked with hundreds of appraisers.I'm not saying there aren't others like you out there, but in the experience of the investors here who have -- again -- dealt with hundreds of appraisers, you're clearly in the minority.And btw, "sucking up" has very little to do with any of this...it's about providing data, instilling confidence, demonstrating integrity and good business practices and building rapport.

I’m not saying it can’t work because folks like Brandon Turner swear by partnerships, I’m just saying exercise extra caution.

This exercise was merely to prove a point.

I could not read the NYT article because you need a subscription, but I found another article that walks one through a numbers exercise of determining the true cost of owning versus renting Do you think this provides similar sound advice? 

Having a safety net for unforeseen expenses is crucial.Failure to Exercise Due Diligence: Investigate possible investment properties thoroughly, especially through title searches, property inspections, financial analyses, and rental market studies.

Arthur,  I did that exercise using Excel's Solver.