Here are the numbers:Listing price (what it would have been): $135,000Offer: $130,000Contract: $132,500, with her paying $489 for a home warranty20% down at 5% interest Rent: $1400 (3/2 single family ranch with attached 2 car garage) Tenant pays all utilities (even down to trash pickup) Cash Flow: $250/month after CapEx, Maintenance, Mgmt, etc; $115/month if using 50% rule 

Of course, there are exceptions, but I think that's a pretty safe bet as a general rule. 

Not an attorney and don't know the rules in your area, but I would think it's good to go.I'd probably just take a video of me entering the property, in case they come at me for "kicking them out" when they're not even there, (or if they're still in there and try to shank me...)

But I think using 8% is ideal.The deal cash flows on the 50% rule.

Thanks, FYI: Texas has wonky state-specific rules regarding cash out refinances that are alien to anyone not in Texas, including myself.

If this is a foreclosure sale then all participating bidders must play by the same rules... competitive bidding. 

If I have an ARV of 249k using the 70% rule places me at about 174k... minus my commission, also the closing costs.

Fees should be clearly stated, easy to understand, and justifiable.

I keep thinking that I have been taking to much out for expenses.What is everyone's thoughts on using the 50% RULE????

That's a pretty good number and easily exceeds the so called 1% rule.