The rents are way below market with plenty of room for improvement on the expense side as well.Do you think I would be able to offer a 36 Master Lease with Option at the current NOI even though its not enough to cover the current debt service?

I am talking about stuff like the tenant below wants me to make the upstairs tenants not take showers before work because they work "Ridiculous hours".

You can use craigslist and filter your searches by craigslist ads listed with keywords such as " wholesale deal, investor specials, handyman special, rehab, etc.

Those will be low income areas, you'll have tenants who won't pay, more vacancy, and the homes won't appreciate as much as nicer areas.

The floor might also be bowed where the toilet sits from rotted out sub floor and needs to be redone and extra structuring underneath.If the light fixture has sustained water below it's best to replace it rather than something bad happening later on.

Louis (I know, I know)$35k all in, will rent for $750bought all cash, hard to finance something like thatDeal #2:25 SFRs in the same area, built around 1940-1950 (sample pic below)mostly 3/1, 900-1,200SF, expected rents around $550-700total cost $640k (about $26k per house)came with 80% note, 25yrs., 6%, $3,200 monthly paymentmonthly gross rents currently are about $14k, with 5 vacancies, so total potential monthly gross rent is about $16-17kThere are many on BP who warn against buying rentals in marginal areas (75% of my tenants are S8) but also some who think it's a good opportunity (see Lisa Phillips' excellent post on War Zones).I used to live in St.

Using the 50% rule and a new >$800 PI payment you are ranging from several hundred negative cash flow to maybe $100/month if you happened to score one of these deals in a slightly higher end town.Obviously if you just did $50K of rehab you should cash flow much better than this the first several years as repairs and capital expenses should be low, but in the long run you need to account for them.

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They said we could also make another principal payment to get the LTV below 78%.

Some investors use it to filter prospects, some private lenders use it as a threshold for their terms, etc but other than that, it's just an indicator.When I analyse a project, I always work backward from the minimum profit I want to make....next is ARV.....from there, I calculate all other expenses (including closing costs on the purchase and sale) and work down to the bottom line.I use a private lender that doesn't know or care about the 70% rule so I don't use the rule.