The problem is that from my research over the past two months I have not been able to find properties in good shape that are under 150k in downtown Ithaca.

Although I am seeing that trend change in the last 24 months..

They may also have access to more detailed data and market trends.3.

I can pull up market trends in major boundaries to see if a market is appreciating, neutral, or depreciation.

You're either first on trend or you get murdered.Now that I think about it, I think the gamble might be better east of Love Field around Webbs Chapel and Inwood area, some of those older neighborhoods.

The kitchen and bathroom are basically in good shape and the appliances are all OK.

So you'll find a house that sells retail to an owner occupant for $50K next door to an REO that was sold in bulk for $7K, so the comps are not a good measure of value.The ones selling cheap need lots of rehab and the ones selling retail are in very good shape, so this is a city in major transition.

Love the folks enough to hang in there longer but have stopped purchasing until I can see the trends reverse.

The area should have job growth, and especially long-term population growth trends.

Conversely if the numbers are trending down I will put more weight on that.The 50% rule doesn't work if the seller is lying or misrepresenting the numbers.I tell my sellers all the time lets be honest and put real numbers out there.This way when we go under contract it will close.If not they will just find out in due diligence and cancel if your numbers aren't right.For most apartment buildings the down and dirty is 30% operating and expenses,10% vacancy loss turnover,and 10% property management.Costs can be lower or higher.One I just closed the seller ran at 29% but she self managed and ran an extremely tight ship.When calculating I like to use the 50% rule upon exit strategy as that's what many go by.If you run at 40% the new buyers will feel they might can not run it as good as you especially if they are out of state buyers.Hope it helps.This is my experience listing and selling retail and apartment buildings.