Federal Trade Commission 'Operation Clean Sweep' crackdown on credit repair companies.Item 3.

If income is generated primarily through your efforts, such as rehabbing, flipping, wholesaling, etc, then to my mind, you're operating a property-based business rather than investing.

Multi-unit Property AvailableNorth Cental Texas, near major universityFinancial Summary Proforma Year: 2009 Scheduled Gross Income: $185,760 Effective Gross Income: $185,760 Operating Expenses: $108,659.84Net Operating Income: $77100.18Tax Rate: 2.39%Unit Mix Information 1 Bedroom/1 Bath No.

What types of units do you operate?

Good Point, I am looking into the operating expenses now to see what the numbers are.

Unfortunately, the deals are even worse than that, because there is a cost associated with the downpayment.Here's how I would evaluate these deals:Deal #1:Gross rents: $2,400Operating Expenses: $1,200 (half of gross rents:NOI: $1,200 (subtract operating expenses from gross rents)Mortgage ($249K, 30 yr, 6.75% NOO): $1,615Cash flow: $415 LOSS per month (OUCH!)

That rule says that operating expenses for rentals run 45% to 50% of the gross rents.

What kind of house has a 50% operating expense expectancy?

I'd liken it to the problems you find in a meth house (where an illegal lab has been operating)," he said.

Throughout the United States, operating expenses run 45% to 50% of the gross rents.