You are precisely right, that same house for $30 Grand in your area, would be at $750K in Orange County, California. :)  Man, I wish those types of properties were in my back yard!!

I asked about their rates, terms and DTI, and made a chart.  

If you reference the chart it shows a co-planar relationship between cash out loan and the payment and profit.

I can't think of a scenario where a borrower would be eligible for a conventional loan, but not FHA for some reason.Here's a decent chart that lays out the "seasoning" period after major derogatories.

(See related chart on 2.)

I think it could help you on running your numbers.While it's still a Work In Progress, I've got charts, an Amortization Table, and some extra costs accounted for.

As far as contributions to the account you could set up a separate equity account in the Chart of Accounts and show the deposit there.

She has negotiated short sales for investor clients, listed (and sold) some REO's for a local bank, and listed (and sold) properties for private sellers and real estate investors.If you heard Mindy speak at the July meeting, you know that she is very knowledgeable, very precise, and very organized - which will make for a very informative presentation.

Median Rent: 1400So property rents for 2.5% of value.More precise numbers are:Mortgage: 290HOA: 190Taxes: 380- I factored in the HOA fees into maintenance expenses because I dont have to take care of exterior/landscaping etc.So I'm coming in with +30 cash flow a month on this property.

I was hoping that you might share a more systematic, precise way of determining cap rates that you might have come up with.