These factors all work to drive price way, way, down.. especially in areas particularly susceptible to boom/bust cycles (see CA,NV,AZ,FL).The majority of the problem in this "mini-boom" is again supply, except this time it is the artificially LOW supply of homes.

Your ability to buy soon depends on a lot of factors.

Hopefully he factored that in.

Based on the rents of $550 per month and a 25% factor (maybe high) for management, vacancy, etc., and a cap rate of 10%, I come out with a fully loaded ARV of $396K which seems absurd considering the neighborhood and the other apartments in the area.

How often do you adjust your insurance based on these factors, annually?

The Bureau’s Chief, Richard Cordray, says he is carefully weighing all factors that may undermine the housing recovery by making it more difficult for consumers to obtain credit.

Especially on your first few flips.)Oh, and don't forget to factor in holding costs and the cost of financing.

I think the attic unit can be built well under the 55K number Jeff has pointed out for this specific case.As Jeff has pointed out, there are many factors.

It is a monthly obligation and the bank will factor it in.

I had to pay the taxes and insurance (which were not factored into their mortgage payments).