If you follow those rules you'll be fine.

If one smoker moved out, another smoker moved in.A couple years ago, I started making it a rule that there's no smoking in the house.

Bill Gulley in our state (Florida) the state courts ruled a few years back that single member LLC's offered no protection.

I'd much rather be conservative and avoid potential (and costly) pitfalls down the road.While the rule seems to be plain, I'd like to know how it's actually implemented in real life.

Are you including taxes and insurance in your 40/50% rule?

Commissions have certain advertising rules and disclosure laws that must be followed.

It seems like the numbers could work for positive cash flow and following the 70% rule, but I'm not sure if the town that the property to rent in is a strong candidate to own the property.

.- Lets use the 50% rule for ongoing expenses.So after you've gone one cycle of option 2a (that is you're done paying the first property off), the numbers look something like this.Cash Invested: 108000*Gross Annual Income: 14400Expenses: 7200Debt Service: 0Cash Flow: 7200* debt service while you're paying it off isn't counted, because the rent covers it.So, you've got an income of 7200 on 108000 invested, or a 6.67% return.

We plan to vacay and scout out the area for our own future rental property.I would think a good property management is key too, if it's a few hours away.Or at least an infrastructure to "clean"/ inspect between visits.I have seen many different contracts. some just a page, some a novel.I have seen relaxed landlording based on the honor system.I have seen strict landlording with RULES and REGULATIONS.I have been in homes, where stuff broke and they were able to fix it right away...that is my biggest issue b/c this lake is 2+ hours awayOne vacay home had a local residence to help monitor their guests (us)

I am looking for multi-family units that meet the 2% and or 50% rule I have read about on this site.