Sellers and agents often inflate prices based on potential income, but like you said, you want to base your investment on what's actually being produced right now.

And I want to rent out their home to produce cash flow with low interest rate, which they have. 

A perfect example from my day today, lol, I showed two homes, 2-bed A-frames next to one another, one was producing 120k, the other under 70k (Both with views).

That company supports foreclose bidders they produce a document daily on all the sales with same info I mentioned above and color coded certain props with extra caution Red or Green for ready to go bid with confidence. although this created uber competition. 

They should be using a net rental income analysis which would produce an income figure specific to each property based on your reporting on Sched E.

However, most new investors make a much lower return and could be upside-down for a long time.Cashing out equity to invest presented much less risk when mortgage rates were 3% and properties were producing better returns.For a green investor, borrowing money so you can borrow money is high-risk.

I am happy to produce this new recording with Ashley Kehr and Tony Robinson on the Real Estate Rookie podcast!

However, RE syndications can produce good passive returns, but they come with risks.  

When investing you are purchasing a business and should only be paying what it is worth for the income it produces.

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