I am doing short sales and have reached out to a local real estate agent in the area that I'm working for comps and I told him I would make him the listing agent in return for comparables.

In my county they have a comparable analysis tool that will give you comps.

I've learned a ton and would do many things differently next time (probably #1 would be not to invest out of state).Because of this, I'm willing to drop my price by nearly $22-$23 per sqft (or $25k off what comparable units are currently on the market for).

I have no idea of what the individual wants for the building, but I was wondering if the same rules apply when looking at a 1-4 unit building as compared to a 12 unit apt building.ie 50% and 2% rules.

When you look up the purchase prices from a year or two ago and compare it with the current market prices...man, it's scary.

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.

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.