(search here for the 50% rule) You have figured nothing in for vacancy, turnover cost, common utilities, and your insurance number looks low to me.What is the current tax assessment will the taxes go up based on your new purchase price?

RENT minus VACANCY minus TAXES minus INSURANCE minus MAINTENANCE minus MORTGAGE(S) minus UTILITIES.$2,515 rent - $251 (10% of rent) - $250 (assume $3k property taxes) - $250 (assume $3k insurance)- $500 maintenance ($100 per unit, includes landscaping, pest control & repairs) = $1,264 left for mortgages & utilities & profitMortgage 1 = $25k @ 5% over 30 years = $134 per monthMax hard money loan = 40% of purchase price. if the $25k = 60%, then your purchase price is $41,667, and your hard money loan is $16,667.

Here it is;Purchase Price $25,000Rental Income $550 / Month X 12 = $6,600 YearlyTaxes $800Insurance $800Repair $1000Reserve $1000 (property is more than 50 years old)Property Management 10%Vacancy Rate 10%Financing 5.25% over 15 yearsHow much should I offer?

I can't even imagine the headaches/vacancies/problems etc.

Sign in the yard, craigslist, letting other good tenants know we have a vacancy (chance for a referral fee) and local paper in small towns.

There will be some repairs and vacancies.

The reason is there is a lot of vacancy time and there are a lot of different people/families staying in the home during the year.

And of course u have to set a standard for the minimum % of vacancies allowed for the property based on the profitaability numbers.

For example, local vacancy rate, no property is rented forever, management, someone has to take care of the property, it could be you, having said that your time is worth something too so you should be paid something for it, funded reserve, mechanical depreciate in value and wear and tear will happen eventually and it would have to be taken care of i.e, roof, etc. 4.

I think it helps attract good tenants, better rents, less vacancy, and less headaches in the long run.