My comment is that most people should consider only using insurance claims when they have a catastrophe strike the property.

(Add for broker involvement and professional services, if you are not planning to do everything yourself.)A 6 cap would make each unit worth $127,500, which strikes me as very high unless it is near downtown L.A. in a nicer community.

I do see how most on here want to use formulas and percentages (X% rules, etc), but in reality, we start with the As Repaired Value on flips, we back out our desired profit margin, rehab costs, carrying costs, back out a contingency reserve, and a few other items to get a strike price...the maximim we'll pay for a property...and there you have it.

It does strike me as odd that the bank would be okay with the only personal guarantees coming from people who don't have the money to put in.

My state requires new agents to work under experience agents for 2 years before striking out on their own. 

I do not want to naively throw money away; however, Ken strikes me as being exactly who he portrays himself to be.

How are you pricing the strike price?  

There are a lot of choices of markets, but Alaska strikes me as an expensive one, where you might have the same issues for price barriers as you do in Seattle.

If I was to pick up from a seller that they didn't know my area and hadn't even been to that house, that seller already has a strike or two against her.

My employed friends say I could never do what you do, not knowing when money is coming in or afraid of disaster striking.