You could be missing out on a lot of deals if you are using 50% for expenses and most places in your market are operating at much lower.Also, if you have built a relationship with mortgage broker, you can send them a deal you are working to get more accurate # as well.

In one town regardless of what the lease says.

Bought a single screen theater in a small town and flipped it a year later for 50x.

Built in the 50s renovated in the late 90s, Rents for $850.

I am not a huge fan of non purpose built properties, but I understand why someone would buy a house with a coach house.

What I have found when speaking to attorneys on 1st position notes and getting a deficiency judgement is it can cost $1,000 - $3,000 to get the judgement, and unless they have other properties as collateral your chances of seeing that $ is slim to none and slim left town or you hope slim hits Powerball or megamillions.

Always look to add value to a property that’s where the true equity is built in this market.

If you ask someone how they accomplished something cool (like how they built their portfolio, what their best property cash flows, etc.), you'll usually have a hard time getting them to stop talking!

I do currently have 50k in home equity which I plan to use for down payments and some repairs on my first propertyMy question is, is it profitable to purchase commercial real estate to be used as a rental property in smaller towns?

We just took on a totally renovated property that a company has under contract for $131K 5 bedroom 3 bath, great area of town!