Last summer I had a solid core door to a cement storage area under a front porch in a basement that rubbed on the new carpet.

I think I will go this route as the PMI will not add a significant % to the interest when compared with interest I would pay to get that 20k by other means (student loans not paid off).I have found a house listed at 125k that is a 3/2 1000 sq. ft. ranch with nice updates (granite countertops, hardwood refinish, cherry wood cabinets, finished basement, modern bathrooms, etc.), garage, deck, and an 800 sq. ft., finished, basement.

Sure, I may get a little north of 1% in my market, but it's STEADY (solid blue & white collar tenants with stable incomes/jobs).

I feel this a pretty solid deal, am I missing something?

Just a quick point... the 50% NOI calculation includes vacancy.Numbers seem solid and I agree with your cap expenditures though based on what I have read you would probably want to create an escrow/savings account as those expenses will come and that would put you in great position to deal with them.Not sure what the whole side deal is with your brother but the numbers seem to add up.

I think family room (front left in photo) was converted from a garage or carport at some point (see the wood in front, while the rest of the house is block).

It's a solid, well-kept home that is a true turn-key.Enough already.

There are lower income areas that are quite solid, and cash flow like a dream.

If you don't have a solid past behind you, be prepared to fund 25% of the purchase and all of the rehab the first time or two.Bird Dogging requires some cash for advertising (though not nearly as much capital as above) and a lot more time.

Use a NOI at 50% of GOI... price it at a 10 CAP Rate and you'd attract investors.Start playing games where NOI is 70 - 80% of GOI... have a CAP at 6 or 7 and you're looking for a sucker.Also, put together a solid package, do the work for the investors.