i always laugh Jon Holdman 's posts.you don't really break down your purchase price & rehab. your rehab could be off. may want to post those numbers as well. i'll assume $85k all cash offer, with 50% rule, you're at 6.7% return. this doesn't inclue what equity you may instantly capture.jon is correct, things happen even when you've got it in the best of mode.

As Brandon said be sure to set up your keywords so you can get instant alerts on subject matter that are important to you, or ones that are relevant to your location.With your experience in construction you're sure to be a popular member.

They say drug addicts consistently chase instant gratification. 

And, I'd signed a lease on a rental apartment, paid my deposit and a broker's fee and had the movers booked for my move the next day...I became an instant private investigator.

The two key issues that I a trying to work through for my first property purchase are:- Determining the most advantageous way to finance my first property;- Locating a property that will be doable in terms of rehabbing and not be an instant money pit, but still be reasonably priced with room for a decent profit.Renee

There are a couple of things I've heard of - offering rent on a Pay Day Plan and charging a higher rate. 

This in turn effectively reduces your cash out of pocket and instantly boosts ROI.

Hi Joshua, thanks for your service.For buy and holds:I'd recommend building a spreadsheet so you can easily plug in numbers to see the ROI - with google you should be able to find some.The spreadsheet should allow you to plug in rental income minus all costs associated (x% vacancy rate, make ready costs, property tax, mortgage payments, ownership fees, $50-75/mo reserve fund, insurance etc.) to measure cashflow or your net operating income.The ROI should also take into account an estimated appreciation in both rent and property value each year.I just plug in the purchase price, estimated rent / property tax / ownership fees each month and can instantly see the return on my money which allows me to quickly size up different properties' return rates.For flips:The numbers are going to be less about rental income and more about properly being able to estimate contractor / repair costs & what the finished property will sell for.

Seems ironic since its such a small payday.

The fees are much lower than what you stated above and they are financeable- that is a very attractive option to the savy investor.Using the 203k I have helped many clients also gain 20,30,40, 50 as much as 100K in instant equity- there are not many options out there that can offer these features.I just wanted everyone to understand the program and what it can truly do.Good luck to all!