If for that market all landlords include utilities even if you meter out individually the tenant will go rent down the street.For a basis on rent levels you look at occupancy levels and similarity to your building.So if all things are equal at 500 per door rent occupancy averages 70%,450 per door 80%,then 400 per door 90%.You want rents based off of the lower number going in.In hard economic times good tenants will stay where the payment is lowest.When hard times come high rent buildings will experience an occupancy dip unless they have great amenities and are newer or there is low supply in the are versus tenant demand.Sometimes even with the higher rent you will have to give first months free or other concessions to move them in or keep them for a lease renewal.So that 500 a month for 6,000 a year now with one month free becomes 5,500 a year or 458.33 month after concessions.

In addition, RE agents often have the worst combination of knowledge and belief - they believe they are experts when they are not, which is worse than knowing that you don't know.

option 1 take x for a down payment and hold a note for 2x at 29% for 2 yearsOption 2Sell an option to buy for $1 for x up front and then lease payments that equal 2x at 29% over 2 yearsWhat other options might I have I paid cash for the property so I can do what ever in terms of titleThanks in advance

Now some will say do that is simply nothing more than getting a return equal to your interest rate, but I don't care.

I tend to like to buy property that has other value add potential or other features that could lead to greater appreciation.All other things being equal it makes sense in my mind to consider non-numeric features that could contribute to appreciation.

At BP, we have established that 50% of the market rent will equal your expenses.

I've talk to the owner and 160k was his lowest, I talked him into $157.5k, here are the figures:Cost Basis $157,500 Less Mortgages $126,000 Equals Initial Investment $31,500 Ratio InformationLoan to Value80%Cashflow / Initial Investment39%Cashflow / Assets8%CAP Rate14%126k loan $793/mo @ 6% @ 25yrPOTENTIAL RENTAL INCOME $42,000 Less: Vacancy $(2,100)GROSS OPERATING INCOME $39,900 OPERATING EXPENSESReal Estate Taxes $6,000 Property Insurance$1,500 Repairs/maint $2,100 Utilities $7,500 Advertising $100 Miscellaneous $500 Snow Removal $500Accounting and Legal $300 TOTAL OPERATING EXPENSES $18,500 NET OPERATING INCOME $21,400 Less: Annual Debt Service $(9,512)CASH FLOW BEFORE TAXES $11,888 Add Back: Principal Payments $2,267 - Depreciation $(6,300)TAXABLE NET INCOME (LOSS) $7,855 Property is all brick, new roof, remodeled kitchen and bathrooms, copper pipes, newer electrical, new furnace, no landscaping.

That is, you made a loan equal to the amount of the short sale.

The means I divided the deposit (which was first and last month's rent) into equal amounts over 3 months.

The exchanges look the other way because of all the revenue earned.Hedge fund managers run equally complex processes, with armies of PhD's, lots of bribery-induced insider trading info, to also outmaneuver the little guys.It just seems that real estate offers a much more level playing field for the smaller investor due to the sheer physicality of it, the need to see it, touch it, do accurate rehab estimates, etc.