Here's a very basic explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

And th e middle of December they get another offer for $230-$240k if rates haven’t climbed.

The fallacy of my thought process was that rents remain stable, interest rates don't matter and price points compared to the market all fluctuated the same.  

A dependable tenant is someone who:Has stable employment in a market segment that is very likely to be stable or improve over timePays all the rent on scheduleTakes care of the propertyDoes not cause problems with neighborsDoes not engage in illegal activities while on the propertyStays for many yearsSuch tenants are the exception, not the norm.

An area like this provides for great cash on cash returns, as well as stable appreciation that you may not be able to obtain in more saturated markets. 

The standard calculations don't seem to worry about this because they (sort of) assume the property will be renovated or reasonably stable from the start.  

Ensure you have a stable financial foundation to invest from.I also disagree with the current "wisdom" of cashing out equity in your primary home to start investing.

But then you bette switch to only looking at condos built in the last 10 years, the property ty[e you’re looking at is not your cup of tea. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $75,000

Cash invested: $31,000

Sale price: $205,000

This is a single family residence.

How did you fi...

In my due diligence period this is my current list -inspector/contractor walk property-get lease terms -Get Schedule E form -Check Public records -Any Liens ?