This simple chart shows the PE multiple difference/spread between SP500 and US Equity REITs, typically REITs more expensive than stocks but now at lowest level/price since GFC-2009, so from a relative value perspective of where to invest a dollar, this is a great time to invest in real estate, thinking long term.

We acquired this duplex at a remarkable 66% of its after-repair value, investing in a full renovation to maximize its potential.

You also have the problem of appreciated assets and then losing S Corp / revoking S Corp, and these assets are distributed to the shareholders at fair market value.

In our case we had to pay approximately 90% of what the appraised value was.

When running my numbers I got the current rates that he is charging, and they are 30-40% less than the fair market rent value in my area.

The purchase price is around $2m and tax assessed value is around $1.3m.

Price at value and make sure you are presenting your rental in the best way.

How did you add value to the deal?

However, it's difficult to know how much value is good enough to calculate the yield.

If values are going up over time and someone else is covering your expenses, that's an excellent start.