Well the 50% rule actually refers to the fact that 50%of a given rent wil go to expenses over the life of the asset, you can tell that may be very inaccurate out here in SoCal due to higher costs.2%, in Orange county I doubt it would be possible at all.You have to understand out here there is an extremely different mindset to buy and hold investing, it's for appreciation not cash flow.I've run across bogs in the past where they discussed how the numbers work out here.

After servicing the respective notes, we are left with ~$110.00/mth for the SFH and ~1200/mth {~200/door} for the quad.If the 60 - 95K SFH existed in our part of the world, things would probably work out in favour of the SFH.

If raised beds are required, I can help them with that (I've helped a local senior residence build raised beds so residents in wheel chairs can garden).Water will not be an issue, I can place a rain barrel on-site.I run the idea of a "release from liability" past Council, but it's not as pressing a concern up here ... fortunately we are still a less litigious society.The gardening season here is only 4-months and our participation will only be committed for the current season, so if it doesn't work out, we'll not do it next year.

im relying on my contract to do a lot for me as well. can i just write in the contract that the seller pays for the search with a clause that if any issues are found and not addressed before the contract end data the contract is void and does not renew. is that a good exit strategy or do i need something else to protect my self from deals that wont work out and unnecessary out of pocket expenses.

I was thinking about making my cover letter the pitch to meet up to see if we could work out a mutually beneficial arrangement.

What happens if the tenant doesn't work out and the property remains vacant longer than you expect?

Unfortunately the home purchase did not work out since we decided to cancel early in the contingency period.

You said you have no experience rehabbing so someone in the game a little longer might be able to make this deal work out.

Has anybody had this experience and if so how did it work out?

I do have an agent but if things don't work out I'll keep you in mind.