If the math of the fair market rents justifies renting your own place, then get yourself and house #1 property qualified with your local housing authority before you go and dive into house #2.

They pay a small upfront fee, then you kick in X each month that they pay rent on time and abide by all the rules.

SKB,Do NOT fall in love with this house.Brilliant....Rule #2 in negotiating, he who cares less wins.I think it's ok to fall in love with a home as long as you don't over pay for it. :)No offense Sir, but by nature, when you fall in love with a property, you overpay....always.

I tend to be very conservative in my pro-formas and don't generally use the 50% rule as most people do...sorry for the confusion...

The post was removed because it was a blatant violation of the rules.

There are, of course, rules and regulations which we must follow as moderators.

[post edited by admin - take a look at the forum rules before posting ads in your posts]Brice Cook

Rehabs ALWAYS take longer than you expect, ALWAYS cost more, it ALWAYS takes longer to sell, and you ALWAYS sell for less than you thought.The rule of thumb for fix and flips is that if your buy and rehab costs are 70% of the ARV, you will make a 10-15% of ARV profit.

I've read about the 50% and the 2% rule and I think I have a clear understanding of it.

on properties that aren't even listed on MLS....Now, I understand the basics to the 2%/50% rule.