When I find a 2% property listed on the market it's usually in a horrible neighborhood.

That's like walking out of Gambler's Anonymous and heading straight for the craps table to celebrate your passing the class.I know Adelanto has the whole weed thing going on, but I can't think of any reason to ever own units in such a horrible place.

He is a multi-millonaire and still believes they are horrible purchases, and I think some of his arguments are at minimum important to consider, and I wish I had before moving into my place.

(awesome resource so far)So background:This is the property https://www.redfin.com/CA/Los-Angeles/14647-Erwin-...Assumptions:Buyer is asking 675k (although in mid 2014 the lot in much better shape sold for 450k, but lets ignore that) I assumed i paid asking price.I assumed the stated rents are correct (they seem okay judging by CL ads)I put 25k down finance via FHA loanGuessed at insurance and PMI costs, as well as maintenance, landscapingAssuming only utility paid by me is water + landscaping + sewage/trashI got a cap rate similar to redfin which makes me think I did this correctly, but mine is lower mostly because I included CapEx & management costs in my expenses (assuming they did not)But just running these numbers, this looks like a horrible investment - so am I doing this right?

If everything goes horribly wrong in your life and one day you have to plain-old-sell (it's important to account for all possible exit strategies,) having lived in it should let you be exempt from being taxed on capital gains.

We are absolutely horrible at saving.

Hi fellow BP members,

I'm currently under contract with a FHA loan on a duplex in Philadelphia and closing is today. The problem I'm facing is the property currently still had tenants that are in default on their re...

Right there that should make you sit back and reconsider.I found a useful tool online that was helpful for me in making basic decisions on whether to move forward on a property or not: http://www.rentalpropertyreporter.com/resource-cen....This tool will help you analyze your cash flow and your return on money, and it has different levels of detail that you can customize for your needs.In addition, it seems like you're going to be paying for this property all cash and not financing, which means as @Jean Bolger said you're only going to be making 6% on your money, which is horrible for a rental property in my opinion.  

This sounds horrible.

Interest rates are amazing right now, and they could be horrible in a few years.I'm afraid that if I buy this house at a premium (what I think is $25k-$35k over priced), that the market will calm down and return to where it was in 2013-2015.