Rent: 6000 /year NOI: 3000 / year (50% Expenses) Cashflow: 1200 / year Leaves: 1800 / year for mort => Max price ~ 22500 (30 year @ 7%)2.

I know there is no way to completely make one's self risk free, but what's the best way to protect one's self and leave room for only worst case scenarios?

Everything you write is accurate as far as I know, but it still leaves me wondering if I can find insurance to cover me at closing, beyond the remedies the contract may provide.Think of it as a 'put':I will show you the contract, the appraisal, the financing approval, the proof that all contingencies have been removed, and I will pay you $x for the option to come to you to take this house from me at appraised value within say 5 days of the closing date.

That leaves the max payment the property can support.

$850/month less 40% for expenses (read numerous threads in landlording forum on this topic) leaves NOI of $510.

Since I am not an investor myself (however..I will leave this blank), and Matt did not answer the question, I feel the need to answer this for him.

If they did, they could take the money and run, which would leave you buying a property that has liens on it for more than your purchase price.

Thanks for the welcome.In fact i'm getting to leave right now to the meeting tonight.

In other words, there are many ways "to skin this cat"

When the current tenants leave they'll be looking for their sec. deposits back, and looking to you, not the former owner.At a minimumFrank