The idea that the rules could change after the deals have been down does damage those who based their decisions on conditions and regulations as they stood at the time.

$450/mo is on the low to mid- range for 2 br and $375 is low to mid for a 1 br in this area.Here's the projected budget I have constructed:Annual Net Rent: 39,30750% Expense Rule: 19,654NOI: 19,654Cap Rate 10%After Repair Value: 196,000Repair/Improvements: (85,000)Current Value: 111,000Offer Price: 100,000 cash to close w/in 3 daysTotal Hard Money Investment/Loan: $185,000 (purch + repair)The terms I have worked out are to repay the hard money within 6 months by placing a new mortgage on the property with an agreed purchase price of $203,000.

Though you didn't say where you are from, these general rules are likely to be true.

This is NJ, the 2% rule rarely applies.

Short term rentals normally fall under a different set of rules.

Agency rules and regulations are set at the state level.

It can be against the house rules.

I thought I read a CNN piece a 6-10 months ago and they were saying National average of SF home appreciation over the last 30-40 yrs was 6%.I guess that might be a good "general" rule of thumb to use when trying to project.

Any work you do is considered a contribution.You must take care w.r.t. the "disqualified persons" and "prohibited transactions" rules.

All adults should be on the lease, with signatures (or initials) on every page, including separate house rules or other addenda.