We're still working out best practices for stuff like that.

I have heard people recommend using a percentage of rent but that method doesn't seem practical to me for a variety of reasons.

For the first 6-8 years we owned it, it was the best small investment we ever made and I practically lived there. 

Also, I think it's good practice to not go for the absolute max the bank is willing to lend which will help you to not be over leveraged.

It is best practice to incorporate repairs into your underwriting.4.

Make sure you analyze the numbers well by practicing on example properties in your market.

Daily deal analysis practice #6Purchase price: 295k (25k above list)Cash needed: 67k20% downBuy and hold sfh5% Capex7% Vacancy 5% Maintenance 10% Property Management CoCr: 7.94% (12.19% if self managed)Cash flow: $443 ($680 if self managed)I would probably move forward with this one.

Meredith:I'm only licensed to practice law in your state of Minnesota, so keep that piece in mind. 

It sounds good in practice to keep exchanging to larger properties, but at some point you get old and tired.

In practice as a CPA, we’ve had 2 clients end up in court disputes because of lousy/online OP agreements.