For me, if I know what my repair costs will be and my closing costs and holding costs and I factor all of that in I want there to be about 15-20% left on the table.

On another note, I'm happy to talk with any of you who may need drafting or design services.

Interesting side notes-1) the two current tenants are longterm 4+ years, but are also not clean and tidy at all.2) there are several very nice houses in this neighborhood, but the one next door is condemned (in tax default), and a house a couple blocks over has been destroyed completely by fire.3) Comps of SF and MF homes are all over the place in the area and it's pretty much impossible to get comps on this type of unit even going back 2 years.Any suggestions on how I should factor the current tenants, neighborhood, comps or empty unit potential???

What are the biggest factors in a vibrant REI?

Bill mentions some of the factoring metrics.

The LLC may offer some tax incentives to you depending on other factors and you should consult an accountant as well.

There are definitely better and worse parts of that neighborhood, but in general the Northland/Forest Park area is considered high crime, so you definitely need to factor that in to your equation. $950/month renters in that area will likely be people whose credit/background info don't qualify them for better parts of town.On the plus side, that is a huge multi-ethnic area - I'm talking off-the-boat immigrant communities (hence all the ethnic groceries in the area).

But, I've negotiated a discount with the Realtor I use and I always factor the cost of using real estate agents into my deals.I would not use a Realtor if buying from a seller I've found on my own because I have enough experience to put together a sales contract on my own.

@James Mudd That depends on many other factors.

I lived there while remodeling and have just finished it all and purchased the house next door which I intend to move into while designing plans and getting permits to tear it down and build a four-plex.