Great tenants = $$$ , raise the rent , and possibly give another landlord great tenants , re rent the house , get crappy tenants who dont pay the higher rent and trash the place = negative cash flow .

We purchased a list of pre-foreclosures in a 5 mile radius which included a column that shows equity. Almost half of the houses have equity less than 100 percent all the way down to -68 percent. My question is whet...

The current deal I am evaluating looks like this:2 X 4 family units next door to each otherAsking price $289,000 eachOffer $250,000 eachRent is currently $550/month resulting in a conservative cash flow of NEGATIVE $4,500/monthUnits are out of date but in good shape.

I guess this info will not be available until I join the local MLS but if any statistics available out there that I can look at(days on market, values over the past 12 months, etc) that would be great.

Definitely speak to a pro about this one before acting on it.Not trying to be a negative Nancy, just being open since you did ask for opinions.Regardless, report back with whatever you decide to do.Best of luck!

@Glen Caton Get over you negative attitude.YOU ARE YOUNG!!!

They often are eyesores and create a negative image where they are located.

I tried searching for official statistics but couldn't find anything.I told the caller that each applicant would have to be on the lease, each would have to qualify with good credit and references, and each would be jointly and severally liable for rent, should 3 of the tenants move out.

Your best advice I believe and I would agree is to always consult an attorney when you are assessing your risk.You almost sound like an insurance agent, LOLThe only part I agree with that you mentioned is to see your attorney and that values may be different in different jurisdictions.I'd say the only ones on this site that can evaluate similar cases would be attorneys, certainly no layperson can make such an evaluation.When I had my insurance brokerage I also did finance work and estate planning with an attorney (who later became a judge) I did valuations for him for loss of work, loss of an eye, arm, leg which are pretty well statistically set, not wild determinations.As I said, costs of defense are insured, the attorney gets paid.If you are exposed to 50M in losses, insure for 60M.If you are under insured, you have a loss and your assets, like you said could be liquidated, but not all your assets, some assets are protected in BK.

I am curious about the need for a property manager in these situations as the tenant would also have equity to protect...would that negate the need for professional management?