You NEED quick easy input methods, and easy access to the data once its there.

In Texas, at least, quit claims are no longer a valid method to transfer title or interest.

Here is how the formula works: Low side calculation: 1200 (100 in increased rents x 12 months) / .20 (return on capital) = 6000 for allowable cost of improvementsHigh side calcuation: 1500/.20 = 7500Again, these specific returns may or may not apply in your market, but it's the notion of budgeting and the method for calculating your max. allowable repair based upon cash flow that is the lesson.

Tenants are polite, call when they say they will, show up for appointments when they say they will, paid application fee with no hesitation - while I realize this isn't really a screening method - judging from how many no shows, rude people and people who balked at application fees, it is a pleasant surprise to deal with someone well, pleasant.

The point there is you have to adapt your investing style to the conditions in addition to your time availability.

My plan was to buy a cheap foreclosure, hud or fannie mae home for maybe 25K and use the 5K left for remodeling and use this method until my money or credit was better.

The important thing to consider before deciding on this method, is the overall condition of the area, and your longer term plans for the unit.

Is this the only method and is it higly effective?

This method of slaving receptacles off the GFCI will get you up to code.Bartstop

Mike, I'm not too familiar with the methods of analyzing the property, can you explain how you calculate the "NOI" ?