In other words, someone that can affect MY BUSINESS.What I don't like is having some "guru" come and spew their overly optimistic nonsense about something they don't really understand themselves.

Do search for this, too, and you'll find some other advice.Its very important to be conservative on this number, not optimistic.

And that's just whats reported, so you have to think that's an optimistic view.

As a rental, awful.If you use the 50% rule, it looks like this:Price $450,000Payment $2994 (7%, 30 year)Rent $3800Expenses $1900Cash flow $-1094If you're very optimistic, and use 33% for expenses, it looks like this:Expenses $1354Cash flow $-448So, if you're really lucky, you'll lose only about $500 a month.

That's your NOI (see threads about 50% for expenses, and adjust accordingly if you're going to be move optimistic).

I optimistic that I can acquire each for $60k.

Even if you optimistically assume an NOI of 60% of rent (i.e., expenses, vacancy and capital expenditures are no more than 40% of rent), then at a 10 GRM, your NOI is 6% of the price per year.

That's $1200, less 40% (optimistic) for expenses leaving $720 NOI.

Make your offer based on current rents.If you want to be break even, and you want to be optimistic about expenses and assume 40%, here's what it might look like.Rent: $3270Expenses: $1308NOI: $1962 (put all of this to the payment)Max price: $310,409 (at 6.5% for 30 years)Even with your down payment, don't pay more than this.

I am very optimistic about the future but believe it will 3 to 6 months before things calm down.