Agreed with that - but credit REPORTS tell the story; scores are just a number being produced that makes a lender happy ...This particular tenant applicant is working on getting a loan, so the credit score would have to be decent to get the loan approved.

Curious as to what steps/formulas you guys use to properly evaluate whether or not a home will produce cashflow and increase in value.

I found several that offer 6-month, 12-month and 18-month balloon notes for multi-unit/income producing properties in the area, up to 60% LTV of ARV.

As long as you can produce POF to show adequate cash, you can generally close any way you like.

Shorter amortization periods can be a real blessing when you're working with a property that produces a strong cash on cash return.

Basically, within a month I would be outright owning a property which can produce around 40-50K income per year, but property would only show around 12K depreciation.

But if you're in this for the long haul, that's my guess at the rent you need to produce $1250 in cash flow.OTOH, you later mention $200K properties that rent for $1600.

The one lady eventually gave up teaching and became a top producer and then went on to own her own company.

I haven't run the numbers but my hunch is that making $30k a rehab will produce such a high short term ROI that it makes sense in the "early years" of an investor's career.

With rentals, as with most investments, returns are produced by investment.