Quote from @Alex T.: @Mike Smithy And just realized this is a 3-year old post...womp, womp.

I would t go much lower unless you can estimate rehabbing accurately or bear in mind the asset class to vacancy and other variable cost issues rising.

Insurance is meant to cover more significant expenses.

@V.G JasonI meant will not shoot up

Purchase price maybe $120,000  a door, that seems high to me for 70s product, but I just don´t remember prices at that time.   

Quote from @Henry T.: There should be a law limiting how close a tree(or type of tree) can grow near a property line.

What I meant in my question was how to use the 250k to generate 1 million income.

To confirm I understand what you meant, if I wanted the cashflow, did you mean look for markets where the purchase price is low and high rental rates ?

A motivated seller is not someone that needs to or has to or even wants to sell their house.A motivated seller is anyone willing to sell their house below market value, regardless of the reason why.Willingness to sell below market value makes someone motivated.Take someone in foreclosure.If they don;t sell, they will be in trouble yes?

You will file a 990-T and there are plenty of services out there to help with this.