The rule of thumb for me used to be that the property needs to be able to do 20% of the purchase price in gross rental income.

The latest red flag is his belief he purchased a "fully renovated" property in Philadelphia for $115K.

I have helped many new investors purchase their first property in Memphis and LIT.

A seller can not sign away his rights in a purchase or any other document.

This growth typically drives significant appreciation, which is the key to making this strategy work.For example:Let’s say you purchase a property for $300,000 with 25% down in a market with an 8% annual appreciation rate.

So I ended up using 0% interest business credit cards which I liquidated to purchase and renovate my property (total credit limit of about $95k total).

Owner occupied loans have allowed us to purchase properties in markets with heavy appreciation, and potential for huge rent increases.

Purchase price: $940,000 Cash invested: $250,000 I purchased a Self-Storage Facility.

If there isn’t significant equity capture at this purchase price, and it’s not in a great location, this would be a pass for me.

.- Bulk Purchases & Portfolio Acquisitions: Banks and hedge funds often look to unload non-performing assets in bulk.