However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

Happy to chat...being a local GC takes out a lot of the risk of the biggest variable for most investors (unpredictable rehab costs) and also allows you to consider more options than the average investor, with your rehab costs being significantly lower.

Real estate investing is forgiving; the average person can still make money even with some big mistakes.

Projected expenses won't be enough.

I have all the income and expenses.

I live in a very expensive market (Seattle, WA) and I am looking to invest out of State.

This does pose a challenge since that real estate is a lot more expensive than if you go more west and south.

oh, and since we are in Western Washington state, it is very expensive and tenant friendly.

Since rent range is pulling from property managers the data is cleaner, because so many self managed property investors market their property way too expensive and they will never get that rent, it is just hopes and dreams.

The stone elevation can be expensive but will really move a house quickly with the added curb appeal.Some things I like to add for not much extra cost..