Therefore you effectively have no debt at all.

I had similar thoughts years ago and I chose not to be a landlord for ever, I don't mind calling on the phone, I'm just not going through having to manage a PM, much less clean outs and taking applications!

You'll have more cleaning costs, you'll have to include utilities in the price, etc.

He has about $4.7k in property taxes, and he'll borrow money from a friend to pay the oldest tax to keep the property, but would just rather sell by the end of the month.comps are 60k range Avg rent for area is $800 on rent-o-metertaxes at 4.7k (included in price)not sure what to estimate for repairs, but it could use paint, carpet cleaning, new toilet, and new lighting in partial finished basement.Asking $38,000 oboWhat do you think?

If someone sells the same property to two different people, (effectively what's going on here), the first one to record their deed wins.

However interest rates are so low and as I am toying with 15 year mortgages a big chunk of my mortgage payments would be paying down principal from the start, and it seems like this should play some effect when considering returns.

How does he 86 tax law effect you?

Even saying you have an experienced property manager only adds limited credibility, as PM's have to be effectively managed, and many fail or fall into mismanagement themselves.

Joel, Sec 8 tenants can make up a difference over the entitlement to market rates but it can not exceed a third of their income.And Joel is correct in that FMR can be adjusted and less can be allocated for your property, but you can also opt out of Sec 8 before such rate changes take effect as they will be paid to the end of the lease term.

I self manage, and I factor in this cost when I purchase using the 2%/50% rule anyway, so the only effect it would have would be that I would not be paying down RE debt as quickly as I am now.