If we use the 50% rule, that makes cash flow 7800 per year and that makes cash-on-cash 8.76%.  

He said he sees the same thing happening in other markets around Florida (particularly South Florida) where foreclosure properties are going 40-50% over retail. 

@Himanshu JainIt all depends on how aggressive the board is with rentals and it sounds like this Association sticks to the rules. 

Keep stockpiling cash and dropping your expenses down to 50% or less of your income so that you have a huge chunk to throw at your property when the time comes to pulling the trigger.Brian

And that will make 50 doors closed and pending for the year.I find a lot of small infill projects 1-12 doors for local builder/developers inside the City limits of Tampa.

My loan terms:  50% LTV, 5.5% 10/1 ARM 25 years  Could have gone with 5/1, but who knew I'd be selling in less than 3 years. :) Options (in 2017)Term: 20 years on Fixed rate loan and 25 years on Adjustable rate loans Rate: 4.25% on 3/1 ARM, 4.875% on 5/1 ARM, 5.5% on 10/1 ARM, or 6.25% Fixed Fee: 1% origination fee plus $300 processing and $300 underwriting fee

Quickly realizing that it is very expensive to live out here, so it challenging to find properties that would pass the rule of thumb tests (50%, 2% rules, etc).

The 1% or 2% rule applies to when you're doing a quick evaluation to see if BUYING a property for an investment makes it worthwhile.

I'm a hospitality management major with a minor in accounting but I definitely don't want to become a hotel manager working 50 hour weeks only to cap out at a $44,000 salary each year... 

My group has purchased over 50 properties at the Courthouse steps the last few years.