The equity that I have gained is not only due to the market but also some forced equity. the appraisal was only based on a drive by appraisal(since it was appraised within 2 years of being bought), they haven’t seen the recent updates, so I believe it could appraise for more but not counting on it.

Then match the bedroom/bath count.

So, I thought it might be apropos to introduce myself--a long time listener, first time caller.I'm from Sheboygan, WI, and after reading six books (and counting) and listening to nearly 200 hours of podcasts, it's (far past) time to build my team, starting with my "core four," and purchase my first rental property in the Sheboygan area.Wishing you all well in these odd and uncertain times!

It took about 4 years to break-even and now 8 years later at age 65 and retired, with 35 deals (10 have sold), we have pulled out more than double what we put in and we are currently still in 3800+ doors (remember syndication; we boast with door count, but only own a small percentage of each door). 

I usually do not count on appreciation for rentals.Do you plan to buy with cash and BRRR?

I usually do the math:Transfer Tax: 2.14%Title Insurance: $1,000-$1,500 (published online based on sale price)Recording Fees: $150-$200Inspections: $500-800  (optional)Realtor fees: $0  (seller pays)Mortgage Fees: $0-$900I don't usually count taxes, mortgage pre-payment, water, etc. since these aren't really fees, but you're actually paying the monthly cost for whatever it is. 

If I was to purchase that fifth house in the scenario above using a commercial loan would it count against my fannie mae count?

In other words is the seller or management company "cooking the books".Example.1.Taking money from another account and making the tenants look like they are paying on time and in full to show 100% occupancy.2.Giving rent credits like first 1/2 month off apartment rent,or full month rent off,or no security deposit,pet deposit,etc. to inflate occupancy.3.Retail leased properties where market rent was 18sq ft but the landlord is selling because lease is coming up for renewal and if tenant doesn't get 12sq ft they will upgrade to the new grocery anchored shopping center that used to be 22 sq ft and is now 18. 4.Watch out for pre-foreclosure volume and foreclosure volume for your area.What I mean is when a buyer purchases a distressed property for below market value they can then rent at a lower basis and still make the same or better profit than you.I have seen this first hand.I have seen rents for apartments 2 bed be 650 a month.Then a few foreclosures happen that buyers purchase cheap for cash.They come on the market and rent for 550 a month.The buyers rent low to get the best tenants to choose from and build occupancy quick.Then over time they will up the rents.What this does is put tremendous pressure on landlords already hurting that have high debt service loans.Then those get foreclosed on and a domino effect happens until the market settles.So my main point is don't count on current rent or future rent.I look at where the market is going and correcting to and buy really low so you have room in case the worst happens.This will exclude many properties.If you make great income form other than real estate and just want a tax shelter with pay down etc. then you might look at it differently.

I would count on a 20% downpayment if you don't want silly terms from the lender.

And who has at least $500K in hand to survive the filling period and to fund the work.If you can get it under contract, and flip it to an experienced investor and make, say, $10-20K on the deal, I'd count that as a success.