You have your total debt payments (the numerator) divided by your total income (denominator).

There are definnitely some very cheap properties in Indy, however, anything in that price range is going to be in a total war zone.

A high cap rate in a "war zone" will cost you money every time!

Been there done that...many times.HOWEVER, I have worked with investors that had numerous properties where we split the down adn I got 1/2 upfront and 1/2 at financing.

The high demand and low inventory is causing bidding wars and making it harder and harder to find deals at appraisal value.

I buy just outside of war zones and have had pretty good success with it.

That said, if you fight back, you will win.Since you are in one of the hottest markets in the country right now as evidenced by e numerous offers in just 4 days, inform the buyers agent that his/her client needs to close and bring the cash to the table for the appraisal difference as per the contract or they will lose the EMD.

The bidding war was so fierce that he couldn't get any.He then took my advice to call list agents directly and got one, whichwas closed about a month ago.

In the SAFE Act (not applicable here) as an example, it as well as other recent restrictions, seem to add the verbage "or any transaction intended to circumvent the intent".With our newly established CFPB now on the war path and tied into the various agencies enforcing RE transactions, I'm wondering if and when they go with the "intent to circumvent" approach to these transaction.

Plumbing issuesHot water tank issues (including one tenant who didn't realize he was draining the hot water with his excessive showers)Feral cats living under the houses (seriously, numerous even with all we've done to remove and cover the vents)Tenant neighbors have called to complain about fire, vomiting in the yard, and pet droppings.