@Lauren Cooper I will share with you MY personal goal and current strategy as an illustration which is not intended to tell you what you should do but in the spirit of trying to be helpful.

I actually use that illustration in classes I teach for realtors to encourage them to vet vet vet QIs. 

@Owen Thornton to keep it really general, cap rate is simply an illustration of the expected "rate of return" that investors are currently expecting to receive, if they pay cash for a property.

Following up on my above post, I’ve attached two pictures illustrating the discount and rent absorption.

. • Rent Range: If the majority of the population to which you want to rent are willing and able to pay $1,000/Mo to $1,300/Mo. you should only be looking at properties that you can purchase, rehab and profitably rent in the same rent range.Below is a graphic illustrating the above.Where can you quickly get this information?

Using his formulas and checking out listings online quickly illustrates how difficult it can be to attain positive cash flow unless you buy distressed properties at a discount.

I think it does illustrate that opportunities are out there, though), http://www.fciexchange.com/FLORIDA/Residential/Non-Performing/0010474.html appears to have 33% LTV if the seller would part with the note for 15% of the $59k principal balance ($8,850).

I'd be very interested in seeing an illustration that would justify investment in these policies.I do completely agree that the mutual fund industry has sold a bill of goods, with their constant entreaties to just pour your money into the latest 5-star Lipper-rated fund.

I was trying to illustrate that some companies do well regardless of external financial crisis, panic, European debt issues, etc.

Anecdotal evidence for sure but it illustrates just how disproportional these markets can be/have been for the past 40 years.