Some evicted lowlife e-mailed you wanting a rise out of you.

After some quick calcs, if you buy the second property and invest the extra $4,200 someplace else it would have to earn a 78% return so that your entire 18,000 would equal the yield on the first property.Also note that my comments above do NOT take into consideration qualitative factors such as the condition of the property, how nice the neighborhood is, etc.

Additionally, let's say that as consideration for the seller keeping the property under contract, the buyer agrees to make timely deposits on a schedule to keep the contract active that may establish 8% of the contract price by a date 30 days prior to the estimated closing date.In the event the buyer fails to keep the contract active, all amounts paid shall be forfeited to the seller as compensation for keeping the property off the market and holding expenses.

We could possibly sell this later if prices continue to rise.

I didn't see the renovation number. 15k max with that taken into consideration.

Here are some related threads.http://www.biggerpockets.com/forums/48/topics/108241-flood-plainhttp://www.biggerpockets.com/forums/25/topics/108700-flood-insurance-rates-rise-january-1-2014-under-federal-lawhttp://www.biggerpockets.com/forums/95/topics/107178-flood-insurance-7000-on-a-70-000-house--need-advice-please

But I think doing a lot of little nice things through the year doesn't add up to too much money, but coupled with repairing everything quickly, and being friendly, I think it comes into tenant's considerations when they are thinking about moving and remember that one other a**hole landlord compared to how easy and nice everything is here..

Account ClosedOr another way of looking at it... if there is a cap rate of 10% and the expenses just rose $11,000 per year in increased flood insurance premium, then the value of that property just declined $110,000.I would be EXTREMELY cautious about buying any flood area property as the costs are slated to rise in successive years per the law, and I would be looking to get out of any flood property now before rates increase every year down the line.There is the possibility of getting a personal flood certification that shows your property not in the flood zone, but that costs money and must be accepted also.Another alternative is to raise the property.

For an option to be valid for real estate, the property must be identified, the parties are identified, a term in time must be stated providing an expiration date, an option price must be stated as consideration for the right to purchase and a sale price that is determinable or stated must me included.

At the end of the day, after further consideration, I just let it go.