Solid,I've considered that idea but the problem is the place I need to live (SFV) is rent controlled and on top of that the cap rates are between 5 and 6 percent.

When I'm trying to set the rent on one of our properties, I look at what comparable rents are in the area and try to price a few percent lower than that for a rapid placement.Your management company should be able to give you a more accurate estimate of time to find a tenant based on rent amount.

About how much has your net worth grown per year (Percent)?

Over the past 80 years or so, a highly diversified portfolio has historically returned between 6-8% annually, which is pretty good for just sitting back and letting the markets do their thing.But, if you can achieve even a few percent higher than that 6-8% through skilled investing (I'm NOT talking about speculating), you can significantly increase the speed at which you can accumulate wealth.

Majority sell within the 70's range.50 Percent Rule Breakdown:P/I = $45,800 @ 4.875 = $243 a monthExpenses = $850/2 = $425Monthly Cashflow = $182Note: It took a little time to find this deal as the location is in a very nice suburb of Kansas City where 50 percent rule deals are very hard to come by.

I have my best friend who I can trust with a construction background.He has proposed he will work daily on site to coordinate the flip and workers.He wants 2,000 per flip.Basically with most flips taking under a month he would make 500 a week.The other 2 months the property is under contract ready to close I wouldn't pay him to have idle time.So for him to make 24k a year I would have to have going 1 flip a month.He also mentioned getting a few percent of the profit as a potential bonus.I am open to these ideas.While I will drop in a few times a week on the job site I am a commercial broker doing real estate deals for clients.I want to be able to work both lucrative niches.Any insight appreciated.

While you might be able to get five percent for the next three to five years, what about when it comes time to renew.

We buy most of our homes from hud so we always start at 80 to 85 percent of what they are asking with out closing.

It is not as easy at using a fifty percent rule.

Management will run about ten per cent, but you'll have effort for that, you could have a sale profit from a longer term contract or note.Also, not knowing what the properties are like, you could change the use of the property, depending on the housing needs in your community.