Compare the cost of insurance to the cost to set up an LLC and factor in the annual filing fees and accountant/attorney fees.

Additional, to the extent that your offer has other superior 'non-price' factors such as 'all-cash' (no financing contingency), large earnest money deposit (EMD), waive inspection (if you are comfortable with that) and possibly a quick close, sometimes you can swing the tide in your favor. 

For example Emerging Trends in RealEstate – The global outlook for 2015 or America’s Rental Housing – Harvard Studies or n.number or published articles and books.At the end of the day you have to look at both macro and micro economic factors so that you are aware of what’s going on globally and it’s local implications you also need to have a deep understanding of your farming areas and know a good deal from bad one.

If you used a credit score as well then there are certain additional factors you need to add: credit score, score range, negative factors influencing score (and mentioning too many inquiries if that is a factor].BTW if you have  set standards in terms of screening you pretty much cover your FHA issues too by being obviously non discriminatory. 

Potential break down:$1818.91 mtg payment assuming 3.75% note rate (400k sales price 3.5% down with 1.75% upfront MI financed into loan FHA)$273.42 Monthly MI FHA (factor when LTV is 95% or greater is .85% annual /12 months)property taxes about $650 per month based on aboveBoiler/heater about $400 average monthly based on the above between high months and low monthswater trash - assumed - $300 per monthElectric (assumed tenants pay this) $0.00property management 8% of gross rents $371.20 per/morepairs $300 per/moAssuming 4640 gross rents, the net monthly cash flow will be around $526.47  a month.

But, if the property were owned by an LLC (properly filed and maintained), your risk exposure would be insulated by the protection of the entity, leaving only the assets owned by the LLC (as opposed to all of your personal assets) exposed to potential lawsuits and judgments.

I'm not sure you are considering factors such as, off the top of my head: 1) unlike the have-a-pulse-get-a-loan scenarios of yesterday, they are required to have proper debt-to-income ratios and meet reserve requirements so as long as they don't lose their job for an extended period, they've proven they can afford the payment; 2) even in a down market, they will have to live somewhere, so unless rents are much cheaper, which is unlikely, it makes more sense to not ruin their credit, keep paying and stay where they are, especially if they've improved the property at all; 3) these loans are much more likely to be 30-year-fixed, not the ARMs of yesterday that adjusted up to a surprisingly unreasonable payment (many didn't understand what they signed up for until, Wham, the payment doubled on them, so they had to walk); 4) they pay MIP, upfront and monthly, so there is some protection for the lender if they do default.Many of these people would be stuck paying much higher rents, building others' equity instead of building their own, without FHA loans.  

It seems that to calculate actual returns, you need to of course factor in your acquisition costs,  but also the servicing costs.

Factors include proximity to retailers and how noisy the neighborhood is.Employees ultimately weigh about 15 variables when calculating a bid price, the monthly rent and renovation costs.

Have no idea what his screening process was like and other factors that may have affected his experience though.This is secondhand - not my personal experience - so the facts may not be 100% accurate, but something I would have never considered up here in the 'burbs :)