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.

Also clarification on the "no rental for 12 months" rule; if we rented it out as a vacation home (for two or three days at a time, like on VRBO.com) does that count the same as a full on leasee-landlord situation, or could that still be an option for us?

Some of my thoughts on the topic:http://www.biggerpockets.com/renewsblog/2010/04/14/6-rules-for-managing-your-contractors/http://www.biggerpockets.com/renewsblog/2010/04/07/the-paper-trail-every-rehabber-should-follow/http://www.biggerpockets.com/renewsblog/2010/02/17/whats-in-a-contract-contractors-rehabbing-real-estate/http://www.biggerpockets.com/renewsblog/2010/06/09/better-faster-cheaper/http://www.biggerpockets.com/renewsblog/2010/05/26/are-you-sure-your-independent-contractors-really-are/

No C- or D areas.Considering the rule-of-thumb of subtracting 50% of the gross rent tocover expenses, and considering that I need at least 10% NOI, I am looking for properties with 20% gross rental income.I would buy cash, and see later if i can get the Fanny Mae delayed financing to extract cash back out of the property to be able to buy more properties.Any suggestions?

I do not know your local rules but even in CA I have a local backhoe guy that can install systems at great prices and the inspectors love him.

Just don't try to deduct mileage to inspect that property ;) -Steven the Tax GuyYour Guide to IRS laws, rules and regulations.

If you're familiar with the 2% rule (monthly rent >= 2% of asset value) you'll know that you aren't getting that now.

There's a lot of stringent rules on a guy like me, since I'm a business owner and I have 2 rental properties.It was tough for me to qualify for 420K in 2009.

Also, since you are looking to rent use the forum search feature to learn about the 50% rule.

You're getting over 2% in rent on purchase price and only putting 15% down... assuming 50% expenses you're still at a 20% CoC return even with a 15 year mortgage... sounds like a great deal by my standards.Taxes are a touch high for the 50% rule at over 10%... you're insurance is crazy high on that cheap of a place (mine are $600 - 800 on $70k purchase price).