The lots are selling for more than a million dollars and people who have already purchased them are having a hard time renting them when compared with past years.

Go have a look at the current listings, and see how they compare.

Improperly retaining deposits is dealt with harshly in many locales, often with double or triple damages.Jon

Then check to see how it compares to other properties in the same area and determine whether on not it's a good deal.When starting out in real estate I recommend liquidity.

Actually, I think I compared them to a friend who tried to teach me to play cribbage.

If your example house rents for $3000 (as shown by comparable rentals in the area) then multiply by 50 to come up with the max you should pay to see positive cash flow.

In 1936 (maybe 1934) Fannie Mae was started to create a 30 year fixed interest mortgage market. 30 year fixed, fully amortized will drive up prices compared to a rolling 5 year commitment.Roll forward a bit.

The net result is a very low return on investment.If I compare it to property I own in Dayt0n Ohio where I can be all in to a 3 bedroom one bath in a working class neighborhood for under 25,000 ( and in some cases 20K) The rental income is $625 monthly and the taxes and insurance average less than $125 an month this leaves 500 a month to cover property management , vacancy , and maintenance .

Please read to the end so we can compare details.I know that you need to login more than once depending on what you want to do.

A commission is small compared to your potential profit.