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.

I simply made it a rule - I wanted $100 per unit, per month.

My question is, would the 70% rule still come into play here since I am planning on living in the home for at least the next two to three years?

Combined LTV of all properties I own...not sure of the rules.

The usual rule of thumb is that if your purchase plus rehab costs are 70% of your eventually selling price (aka ARV or after repaired value), then you can expect a profit of 15% of ARV.

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

This is from memory, and current rules have probably changed.

There are some communities in which Lonnie Deals will be very unwelcome and others where they will value you as a partner.The basic rule of thumb?