Stop the blaming game and the scarcity mindset, there are plenty of deals to go around. good all around post.. only thing I slightly disagree with is having your agent look at every deal your looking at.. that would have the agent bogged down with busy work.. the investor should know what a deal is by just the big numbers.. they dont need to run calculators on simple rentals use 50% of gross income for expenses to start.. if you do better fine .. but if it does not cut it 50% or a little lower then its no go .. and on to the next.. 

As a new investor I am working to find the right balance of allocation towards Vacancy, Capex, Emergency, etc. I currently sit anywhere in between 6-8%. I like to be aggressive with these numbers as cash flow is not m...

These babies bring in over 85k Gross and 72k Lessons learned?

These babies bring in over 85k Gross and 72k Lessons learned?

Cash flow-oriented investors would do well in this market, since Montgomery’s rent-to-price ratios are very favorable—for instance, we’re seeing $150,000 properties in B/B+ neighborhoods fetch monthly gross rents of $1,200 to $1,300.By the way, if you’re looking for financing, a debt service coverage ratio (DSCR) loan could be a good option for you since you’re an international investor.

Lets shoot for $90k down, $150k gross per year, adjust for your COC calcs, once you throw in expenses, Debt/Interest.  

I know these types of deals well as I've done over 60 of them in the last 12 months working with out of state investors.These will rent for $1,200 - $1,300/mo and your costs would be:- Mortgage payment = $499/mo- Property taxes = $200/mo- Property management = $120 - $130/mo (10% gross rents)- Insurance = $75/mo- Capex/vacancy/repairs = $180 - $195/mo (assumes 15% gross rents)- Interest payment on HELOC = $187.50/mo (assumes interest only at 9% for $25k borrowed)Total costs = $1,261.50 - $1,286.50On the low end of our rent range you're losing $61.50/mo.

But understand the type of risk could be the exiting tenant having poured cement down the drains, no appliances, no cabinets, a leaking roofs with mold inside the house, no AC,  or squatters having lived in the house with untold 'grossness' being left behind for you.  

Her gross income is $125K/year (thru two jobs).

We calculate rent plus all debt payments as a percentage of gross monthlyincome.Our underwriters strive to analyze and balance all the information above to determine the statistical likelihoodof a tenant paying their rent on time.ApprovalOnce an applicant is approved, we require a nonrefundable Holding Fee to make sure they are serious and don’tchange their minds.