I don't know if you've got really screwy insurance rules in MI, or what your net worth is, but reading your post you are WAY OVERINSURED.

The Planning and Zoning Dept should be able to answer or direct all your questions appropriately with regards to their rules and regulations.

Using the 50% for expenses rule of thumb (read in the landlording forums), that says you need rent of $3150 to be breaking even.

So, if it is "OK" for the government to ABANDON "ethical" principles of finance, and it is "OK" for Business (Corporations, etc, both small and large) to ABANDON ethical" principles of finance, then how can you possibly expect the individual "consumer" to play by rules which ALL FORMS OF BUSINESS are discarding in droves, in favor of the loopholes provided by government?

Or does a large note on the property just help justify the higher appraisal value after rehab?

I am starting to see distressed condos listed retail, in incredible neighborhoods, with good schools, that would rent at break even (paying retail) using the 50% rule.

You will be losing a ton each month.Rent: $4070/monthExpenses: $2035/month (50% rule, search and read)NOI: $2035/monthPayment: $3602/month ($570K, 6.5%, 30 year)Cash flow: -$1568Even putting in $100K and ignoring closing costs, you're still in the hole $935/month.

And these people lives with commision monies, he can get upset, would you be upset if somebody negotiate your salary even if you know you are doing a good job.I am not justifying his commision but he might be getting what he deserves and you are the person who can decide.And also my honest opion is that sometimes people intentionally talk about negatively about something and/or someone just to keep you stay away from him (why one more investor he should share his inventory !).

Lenders are catching up with the new rules put forth.

But, it would seem like rates for decent borrowers would fall.I do wonder if banks will raise price expectations of both short sales and REOs in order to justify higher prices for those bad debts they're going to lay off on us.