Friday morning the capenter and I stopped by to give it a second look.

The other factor is that banks want to see the borrower have some "skin in the game"...when you are 100% leveraged on a property (even one where the value is significantly higher than what you purchased it for), it's pretty easy for you to just walk away on a whim.

All these things factored in would seem to make it difficult to compare yearly income to purchase price.

So many factors to consider.

I'm just using this for planning factors.

factor" (is that a scientific term?)

You go from dividing cash flow by $20,000 to dividing it by $5,000 increasing your CoC by a factor of 4.

This is a process most commonly between competing brokers on behalf of their agents discussing issues such as what there a coop fee, who showed the home and when, were there any signs of abandonment or estrangement by either parties and a multitude of other factors that only a fair impartial hearing panel would be used to determine if the rules set out by the Nat' Assoc. of Realtors are properly followed.Close the transaction, get your home sold, and thrreated to sue any Realtors for totious interference if any of them threated to hold up the sale unless you pay them a fee over and above what you have already agreed to in writing.

If when you factor every thing in if it really costs less than $100 and the amount of time it takes you to do this and collect your money each month, do the accounting and taxes then what the heck go for it.

This indicates an expense ratio of about 33%, which is extremely low unless you're doing the property management and maintenance yourself (in which case, you need to factor that time/effort into your equation).The reason your expense ratio seems so low is that you have just rehabbed a couple units and just started filling vacancies.