@Joel Owens makes some good points.Occupancy/vacancy rates are just one of the factors to "back" into a purchase price.

When you factor in the 50% reserve, this is basically saying that you take 50% of the top of the gross rents and save this for maintenance, repairs, and other operating expenses.

No one seems to notice any of these factors....

But if you're planning on holding for awhile that is factored into expenses already.

The problem is that when you try to flip a non-traditional houses, the risk factor increases dramatically.

On top of increasing taxes and property management costs, I did not even factor in capital reserves.Brian Nguyen, better to never invest then to invest and lose your shirt.

I've factored in Taxes, Insurance, Cleaning, Snow/Lawn, Turn over.I've got the money to fix it, and my 8-5 can supply additional funds to turn it around if needed.Knowing what you know, would you jump on this deal?

When you factor in the time to write ads, take pics, hang lockboxes & chase all the paperwork around I'd gladly pay a full months rent (assuming it was done well).

If he doesn't black out the price, I now know how much he's making, and that factors into my decision to negotiate and how.If he blacks out the price, I'm fine with that and will negotiate based on other information relating to the deal.

If you borrow to bring in the house you will have to factor it into your sales price... opinions vary... but that is my quick and dirty take...