Also, I’m using my SDIRA – which essentially forces me to take a pure passive route and engage a property manager.You hit the nail on the head regarding the septic and well – these are my greatest concerns.

Risk of an investment property has less to do with LTV than it does to do with pure cash flow.

Anything before is pure gambling.

Now if you choose to sell, then the banked amount that you did not have to use is like pure profit to you IF AND ONLY IF all expenses (including property taxes and insurance and the increase in business or personal taxes that that property caused) associated with that property are paid out of that bank account.Then the second half of the rule would be able to be applied strictly.

If you are looking for pure cash flowing investments you may want to look in other cities and placing them with reputable managment companies.

Probably not entirely coincidental that a guy from Texas suggests Texas and a guy from Missouri suggest Missouri.I have been looking at a number of different markets (although for pure flipping, not buy and hold) and I have come up with the following:Phoenix, AZAlbuquerque, NMRiverside, CASanta Ana, CAYour 45K probably prices you out of all of those except Phoenix, but once you build up more working capital, you may find your model works better in the other markets, as well as the ones Bryan and Bill mentioned.

It is strange to me that you're sizing their equity stake based on revenue and I haven't really seen this done very often.Larger deals generally have some sort of setup that gives the pure equity investors preference on distributions.

But if you DON'T get those returns, then you HAVE made a mistake somewhere.Appraisals are pure guesswork at the best of times.

@Mike Lynch,Purely my opinion, but anytime you can prevent a distressed seller from getting a major ding on their credit you're providing a needed service.I think it would be a wonderful way to begin your investing business.

That's about $5000, and they were there for 16 months, so that's about another about $3800 a year.So for my single family home, it's pretty consistently $3800 a year not counting smaller repairs and not counting any big CapEX expenditures.The thought that you're only going to spend $2500 per year per unit is just pure fantasy.