tucker713,Basically, a rental business consists of buying properties at a big enough discount so that they will provide a positive cash flow.

The professional liars consisted of account executives with major lenders and borrowers, of course.

If you are factoring properties into your comps that weren't sold for FMV then you comps will be skewed in a way that isn't giving that area a fair picture of what you or your rehabber can sell a house for IF it is properly marketed and advertised.Now when you're dealing with rental property comps are one component but many times other factors are more important to a rental property investor (i.e. possible cash flow & ROI, gross rent multipliers, or other "magic" numbers).

From my limited experience, successful partnerships are based on sharing the same vision and goals.My situation is as follows:My wife and I have built up a small real estate porfolio consisting of 12 units across four properties.

That means to calculate the cost of your money you need to multiply 4.5% X 35%.

Don't worry about getting sued with single family homes, buy a decent home in good shape, keep it in good shape, follow the landlord laws, be consistent and fair and get insurance, lots of insurance.

The good news is, he knows I buy properties consistently and if he chooses not to be reasonable with his pricing, he will be replaced.

What is important is that you pick a reasonable method and be consistent.

Roof - adds no value, unless in disrepair - houses are expected to have a functioning roof.Electrical - adds no value - especially if systems are consistent with the neighborhood/age of property. - might consider upgrading fixtures if it will make the place brighter and a little more appealing.Curb Appeal - best bank for your buck- sweet equity.Appraisers are people too, not robots, so a home that feels comfortable, well maintained and clean will affect the value.

I agree with @Rhett Tullis about increasing the deposit, instead of the rent, and would add that you need to have your rental criteria clearly documented and be consistent in applying that criteria...otherwise you run the risk of accusations of discriminatory practices.