Do your homework first and best of luck...now IS a great time to buy if you know your stuff.

Loan Amount $50,000 (includes purchase/repairs)Repaired Value $77,000 AppraisedMy interest rate is 6% over 20 yearsP/I $359.00 Monthly Rent will be $700.00Tax $129.00 Insurance $33.00 I have been learning about cap rates and the annual loan constant and from the math the give me I get a cap rate of .09%.

One of them told me he'll buy every one of them for $20 (this got me thinking, I should be charging more since he was so eager to pay $20) I decided this, $20 a piece with a minimum order of 10, that equals $200 for you math guys :mrgreen: .

Renting your condo may be a great way for you to earn some extra money in this economy, but it's a big decision that should not be taken lightly and should not be executed without first doing your homework.

You bought this house without doing your homework IMHO.

Its that simple..You can spend hours on there looking for things, and you may even come across stuff that you didn;t think to suggest to your realtor.I do this all the time..I can do my own comps, check days on market, all types of things..This makes it easy on my realtor..I search for my own stuff, do my own homework to where the deal suits me, and when I find something I like, he does the agreement..

Don't give in to temptation and buy a 1% deal, it can't cash flow - the math just doesn't work!

Just do your homework upfront.

To make the math simple by using the 50% rule for expense estimation, here are the numbers:At $100K purchase price and 25% down, your NOI is $10,800.

Hey @Jon Holdman, great explanation and easy way to do the "napkin math" for any property.