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.

Our rule of thumb is to try not to pay more than 1/3 of the end price of a house for the lot.

No Wisconsin Statute addresses the issue nor does any administrative rule in Chapter ATCP 134 of the Wisconsin Administrative Code.Daily late fees are not illegal in Milwaukee County.

I don't want to violate any rules!

I'm thinking, after checking with the zoning and association rules, of trying one out as a vacation rental.

And, the 2% purchase price to rent rule just doesn't seem to be adding up here.

I just use 8.3% for vacancy (1 month/year), and 10% for repair/maint.That's all included in the 50% rule though. $2580 * 50% = $1290 - $550 = $740/mo / 3 doors = $246.66 each door.That's legit :) From a numbers standpoint everything looks gravy.