@Cody Steck - see the link below:http://www.mobilehomeuniversity.com/articles/evalu...I personally see the 70 multiplier as function of an expense ratio and a cap rate derived in a single number.

@Robert McEachernYes, in the U.S.A. you have a cap on depreciation recapture ... count yourself lucky :-)

I know there are rules regarding active versus passive investing and there is a cap (MAGI) but if one is over the cap, can nothing be deducted?

Not all 401k plans allow it and there is a cap on how much you can borrow.

Unless you have lots of room to increase performance and, consequently, value, the reduction in leverage will also reduce your returns.Alternatively, if you have a large, stable property in a class A area and are happy with a CAP of 5-6, in order to obtain the cash-flow, then this approach is fine.

On this property, even with modest numbers, I calculated a cap rate of 5.2%.

The property is in a blue collar neighborhood.To achieve a cap rate of 10% or above the price has to be $137,760 or lower.What do you all think and how much should I consider without too much or a too low ball of an offer?

In Omaha, I see homes available that meet a cap rate that looks decent.

Comparing that with the cost of $75,000 I would probably not buy.I use a cap. rate of 8% or 3 percentage points above my cost of money. 

I have a NOI of 230k with a cap of 18% (13% using 50% rule) which means there is plenty of money left to pay the loan.