Just Do It" is excellent advice if you're buying a pair of tennis shoes, but terrible advice if you're starting a business (and operating rental properties IS a business).

Even more specifically, if you are in DC Metro (would love to meet people operating in the DC and Northern Virginia area).

One glaring clue is that the e:mail correspondence will be disjointed and feel awkward to read -- spelling will be accurate, but phrasing and sentence structure will not be of the caliber you would expect from a highly-educated professional.Variations on this scam can be very sophisticated: Some operations have "mules" on the ground here in the states, and most of the time these people will not know they are pawns in the scam.

He told me he got out of the business because, in part, he could not "operate" in a physical manner with deadbeat tenants.

So I basically have seen two basic formulas on these message boards to determine whether or not a property is a good buy.For rehabbing: (ARV * 70%) - repairs = Max Purchase PriceFor Renting: Rent * 50 = Max Purchase PriceI would like to buy a property to Rehab, but be able to fall back and rent it if I can't find a buyer quickly... while also having positive cash flow after mortgage and operating expenses.If I put an offer on a property for $25k and the ARV is $50k (if I put in all new flooring, paint, and redo the kitchen and both bathrooms) that leaves me $10k (According to the formula) for repairs which I could likely do if I'm doing it all myself.BUT...That would have me with $35k into the property, and I am only confident of being able to rent for $600...

whats teh annual operating cost for this site?

You fail to take into account operating expenses, which include paying useless people to shuffle paper and pat each other on the back.

I calculated the MOST I could pay would be 20KP&I: $126Taxes & Insurance: $233Total Payment: $360Operating expenses: $375 ($750/2)Cash flow: +$15What are your thoughts, is cash flow too close to operating expenses?

They don't understand operating expenses and cash flow issues; and therefore end up losing money, and 2. they don't understand how to properly deal with tenants.Good Luck,Mike

Yes you can make a “profit” in a non profit... well kind of… but it is offset by the non profit buying assets or expanding operations i.e. buildings, normal operational costs, payroll, growth etc.