Purchase price: $140,000Closing Costs: $5,000Downpayment: $28,000Loan amount: $112,000Rate: 5%Term: 30 yearsPayment: $60150% of rents: $1,000Cash flow: $399Cash flow/unit $99.75Yearly cash flow: $4,788Cash on cash return: 14.5%Asumming I can negotiate for a $140K purchase, using the quick and dirty 50% rule that would leave $1,000 to service the mortgage payment with $399 cash flow or $99.75 per unit.

By most MLS rules, it is a requirement to only give access to licensed agents.Now, that isn't necessarily "absolute" as others seem to be saying.

The cost to invest in an "option" only costs $100.00…This is the rules of my custodian, Equity Trust.

Jacob, after two years (2 tax returns) of documented rental income, lenders will then use 75% of your rents as income and add it to your total Gross income (this is actually a high number to use considering less than half is viable for use per the 50% rule).

Notwithstanding the new JOBS act rulings, you pitch the deal to people you know.

If I apply the 50% rule that leaves me with a cash flow of $150 per month.What are your thoughts?

I see it as creating the rules and instructions to a board game in order to prepare myself to play it.

The ruling in Detroit is the beginning of sanity/insanity depending on how you look at it.

Some tips on evaluating deals: The 50% Rule: How to Quickly Analyze a Multifamily Investment Property

Evan, I think you'd find it difficult to cash flow this property.If you use the 50% rule that states expenses (everything except principal and interest) over a period of time will equal half of the market rent per month, you're looking at $1935/2 = $968 as your cash flow after expenses.You could save some money (~8-10%) by managing this yourself, but my hunch is that with that old of a property the upkeep and capital improvements will be higher on this deal than a newer property.