When evaluating a potential real estate investment, both the Debt Service Coverage Ratio (DSCR) and the 50% Rule can be helpful tools.

The cash on cash return is only meaningful when you evaluate it based on your long term plans.

Before you think about investment real estate regardless of being a VET or 100% VA disability you still must consider and evaluate your RICE!

However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves. 

Quote from @John Keane: @Jay HinrichsGot it, I will definitely re-evaluate my profit split structure after what I have learned here. 

I’m drawn to the endless opportunities the Texas market offers and am committed to building my knowledge and skills to make smart, strategic investments.Right now, I’m focused on understanding the basics—everything from evaluating properties and navigating financing to learning about the unique aspects of the Texas real estate market.

I would like to do some research on other rental properties before I set my priceComputer algorithms are good for studying a general market, maybe even a neighborhood, but they are terrible for evaluating a specific rental.

Best to evaluate this question on paper with an experienced broker.

As far as whether to approach them with or without an agent - approaching them directly without an agent can save the seller probably 2.5-3% of fees, which give you some room to negotiate on the price, but you need to be confident that you are capable of evaluating the property value, estimating on the amount of work that is needed, knowing how to negotiate/ structure the deal, and navigating the closing process.

This would also be where an appraisal would be ordered in a traditional sale, but if using a hard money Lender, they have probably already evaluated the value before offering you terms.5.