Sellers motivation shouldn't factor in what you can afford, thats a bonus if they will negotiate, but your numbers have to make sense to you and work out for multiple exit strategies (str, ltr, sell etc)Running the purchase numbers is pretty straightforward, use almost any online mortgage calculator, make sure you know taxes and insurance (taxes will go up a bit if it is currently owner occupied and you don't plan to live in it) Once you know your mortgage amount then start looking at other STR's in the same area and same size/amenities and see what they are getting per night and how many nights a month they are rented to calculate what you MAY be able to get.

I live in Spring TXfor reference my mortgage, taxes, and insurance are $1840 each month, $385 per year in HOA fees 

I am thinking Austin TX might be a good place to start due to the state's tax incentives and the recent decline in prices.

This will be my first rental property so want some advice.Purchase price - $195KDown payment - $59,176 (25% plus other closing)Annual rental income - $29,424 ($2,452 a month for 4BR)CoC return 10.7%Cap rate - 9.7%; Price to rent ratio - 6.6Cash flow will be over $5k per year after paying taxes and mortgage.

Property taxes and insurance are typically the two biggest recurring costs.Below is an overhead cost comparison of three states with no state income tax.Sources for insurance and property taxes: Insurance - ValuePenguin, State Property Tax Rates - Rocket Mortgage.To demonstrate the impact of taxes and insurance on net income, I compared the overhead costs of a $400,000 property in these three states.

I understand that notes is a business best learned by doing, but I am trying to lay a good foundation of knowledge as a starting point.To date, I have read these books:"Invest like a Bank" by Beaux Blast" Little Green Book of Note Investing" by Fred Moskowitz"Real Estate Note Investing" by Dave Van Horn"Note Investing Made Easier" by Martin Saenz"Invest in Debt" by Jimmy Napier"Profiting from Non-performing Mortgage Notes" by Amed HazelI welcome any thoughts or recommendations that the group may have.   

Some easily verified facts:- San Diego appreciation has been great - San Diego rent growth has been great- prop 13 protects against exorbitant property tax increases- San Diego has one of the lowest eviction rates in the country- San Diego has one of the lowest delinquent rent rates in the country- San Diego has a very low vacancy rate- historically for long holds, San Diego has produced near top in nation return.  

They can't keep them all due to debts or other personal reasons.

I'd like to one day find all the deeds on the property going back to 1857 just to get a more accurate picture. 43 years: 4,400% gain (annualized 102%/year)26 years: 144% gain (annualized 5.5%/year)6 years: 47% gain (annualized 7.8%/year)Besides Real Estate where else can you see these kind of gains, tax benefits, and leverage?

He was referred to me through my CPA, whom I also feel is worth the $425 I pay for her office to prepare the taxes and who has set me up on Quickbooks.