Figure out what you can afford to pay and bid that.

I just hear at the rea meetings that veryone is struggling right now and they are seasoned and that is where most of my concern comes in, while I do have some money I cant afford to lose it.

I am trying to find a niche for myself and I can see providing affordable housing to retirees being a part of it.

So, if the expected rent is $725, you can only afford to pay about $36,000 for the house.Think of it this way.

If they can not afford the place now they will not be a positive tenant.In many ways hard money lenders avoid at all cost lending to homeowners.

The rule of thumb is that you can afford to pay 70% of the ARV (after repaired value) less the cost of repairs.

If the homeowner couldn't afford the mortgage payment, they certainly can't afford the rent.

With an income of 1200, you can't even afford the debt service.

So needless to say, I have already afforded myself a great education in the land of real estate.I recently, Finally, read Rich Dad Poor Dad by Kiyosaki.

But we are finding the taxes on the ARV will not be affordable for us just starting out, as it would be our first home.