Just make sure you budget for maintenance and expenses as part of your monthly cash flow analysis - we typically do 7-8% of gross rental income for older Boston homes.  

At age 20 I remember standing in my friends fathers kitchen telling him that if we could put together $800,000 to purchase rental properties in Phoenix, we would be able to purchase and renovate 15 properties, cashflow roughly $130,000 per year in gross rents and in 3-4 years we would likely double the initial investment.

I have the option of buying a 4plex at 94,000 (Cash) that's generating 1,460 a month and 17,520 gross yearly.

Most banks will take an average of your current monthly YTD avg. gross with the past two years of income from a W2 or tax return.

Asking price 99kPut 20k down= 79k financedYearly expenses:Debt service 30 years at 5%= $5,088Taxes= 4,357Insurance= 1,200Vacancy, 10% of gross rent= $2,500Gross rent= 25,200. $525 monthly per unit.cash flow=12,05560% return on investment.Working class area, not "ghetto warzone' at all.

Hence, after maxing out our credit, laying off our employees and my wife and I working 16-18 hours per day (I still worked my regular day job in addition to working until 1:00 am at the bar), losing our house, and finally, filing bankruptcy, we learned many valuable lessons.

I am a newbie,here is my input through these days lerning.Hope that would help.tax is high,so we assume 60% gross income goes into expense.NOI=19,200*40%=7,680Annual Cash flow=NOI-debit sevice(PI)=7,680-5,958=1,722cap rate=7,680/104,000=7.4%

We have used this tactic to fire an employee at our restaurant as well, the old take 'em out for a beer and tell them it is the better thing for them.

Financed offers must have BAC pre-qual, BAC employees cannot purchase home, Deed restruction language for cash deals transactions The Grantee(s), or purchaser(s), of the Property may not re-sell, record an additional conveyance document, or otherwise transfer title to the Property within 60 days following the Grantor's execution of this Deed.So, am I understanding this correctly?

In this case go 60% costs.530 X 8 = 4,240 X 12 += 50,880 gross expected income50,880 X .60 annual costs = 30,52850,880 GEI - 30,528 annual costs = 20,352 NOI20,352 NOI at a 10 cap purchase price is around 203,000Way, way off from your 320's evaluation.