Aaron McCarty if you look at the formulas/metrics in isolation then the numbers don’t mean much.The formulas/numbers is all relative, especially as everyone/business has different goals and risk tolerance.Compare the results to the alternative, example: compare the historical stock market return on blue chips to an A class area.

Jim you keep doing these post like this and NO ONE is going to buy rentals ever again LOLbut seriously I like that you balance out all the blue sky and bring reality to the equation.buying rentals is not a set it and forget investment no matter what.can be with really special A class to strong B class but no way with blue collar 800 to 1000 dollar tenants.. don't care where how or what.. they are all people. some are pigs some are clean and neat some in the middle and you can't tell with an application .I suspect if you took the time to go check out their automobile before you rented to them.. or did a sneak pop in on where they are living now before they move into yours you might catch the pigs before they move into your freshly rehabbed home.

Thank along lines of a car that’s upside down, the payoff is worth 20% more than it’s blue book value worth, like pay over 12,000 and bluebook is 10,000, does that make sense? 

I suspect other blue collar areas can produce similar results so the deciding factor was close to us.  

In many blue states, they go bugnuts over stuff done without permits.

Permits have been issued with blue prints available! 

How people with blue collar jobs can afford to live there remains a mystery to me.

*breathes deep*  Okay here goes, I need help.  Property located in New Mexico, very rural, very limited in choice in repairmen and no property managers. (First big mistake in buying there, we were living there at the ...

If it's small enough, there are exceptions, or exemptions, and depending on the location of the investors and property, only state "Blue Sky" laws may apply, as opposed to the federal SEC regulations. 

Then out of the blue we are told our house is flooded because the tenant skipped out and the pipe burst.