Alot of banks will allow a 3x repair value for the home to be factored in the market analysis of a home in a pre-list stage.I deal with foreclosures on both sides, the agent preparing to sell, and the investor wanting to buy.

I wouldn't even CONSIDER deal number 2 unless the purchase price was at or below $57,500.Of course, you'd still have to perform a cash flow analysis using real world numbers (with all of the expenses, not just the ones you included).

I like MikeOH's analysis method that he has alluded to elsewhere, where if the property wouldn't cash flow at $0 down, then it's not a good deal.

One of them is the Property Analysis Tool on this site.

You would be much better off making the minimum payment with none of your own money, and putting your own money in a low risk investment (like a mutual fund or CD).I would suggest you do a little more analysis here to make sure you're putting your cash to the best use.

Thank you for your comments, Mike.We've done the analysis, and for our area this property looks solid.

That's just a rough estimate and I would certainly do a cash flow analysis.

For residential rentals, which is what we're talking about, I do a cash flow analysis and determine the price that will allow me to have a positive cash flow of $100 per unit per month using the real world expense numbers and 100% financing (even if I'm putting something down).

Again, do a cost analysis and unless you're moving 50+ properties I struggle to see how the benefits outweigh the costs in time and money.I'm not an attorney; I've started several LLCs and run properties in several states; am also a licensed Realtor in two states.

I found a apt complex which I ran through the property analysis tool but I want check with the experts here before I decide to pass since the numbers don't seem to work.