I agree with Jon, the rule applies so long as the assumptions used to formulate the rule apply, that's why you pencil it out before you sign a contract.

We too plan to have multiple properties and want to get as much right from the start as possible.I've been listening to the BP podcasts and started formulating a Rent Talk book to put all the tenant informant into one document for our renters and ourselves.Thank you!

Reading bits and pieces and formulating deals on your own is a great way to get in trouble, sooner than later, it's common among newbies with a little knowledge.

If it's a multi unit building - live in one unit and rent the other units.Hopefully, others will add to my comments, so you can formulate a game plan.

Once you are aware, you can formulate your own pro forma income statement by looking at market room rates in the area and average occupancy rates.

It will result in you formulating the decision based on your head and not your heart.Account Closed made some excellent points coupled with great questions that will help you put this thought/purchase to rest one way or another.Good luck with your decision and keep us posted on the outcome one way or another.

This thread is very interesting and I just wanted to jump in since I am formulating a strategy to buy fully depreciated free and clear properties from retiring landlords and thought the OP could use this as well.

I have skipped over a great deal of detail in the plan that is formulating in the interesting of writing anything at all.

Reason being, if you read enough you'll notice that they have conflicting and often opposing viewpoints when comparing the books/authors with each other.This sort of doesn't give you a chance to formulate and emulate one position and subsequently test it.

However once you know the net operating income the park is currently bringing in, then you can formulate an offer to purchase this park from the seller.