Hello,I am looking at a fourplex in fort worth Texas. 2 of the tenants are on section 8 and are paying rents much lower than the surrounding area. 

Pretty decent overall metrics on my offer of about $139k which would rent for about $1,400However, after inspection, it probably needs $3,000 of capex and with a foundation inspection it needs at least a soul leveling for $4,000 or a full foundation overall auk for $10,500I countered during the option period with $125,000 to cover my capex coats. 

There are times to use monthly MI as well if you think you've found a great deal where you can force equity or improve the value of the property so much so that your current loan with monthly MI will be at 80% or lower LTV/loan to value after your improvements then monthly MI is better because you may end up refinancing or removing MI 6-24 months after closing.

BUT NOW due to mining recession house prices are plummeting and so are jobs - it's not looking better in the close future.My girlfriend and I have joined the "Rich Dad" based mentorship program for the UK and connected with a local investors group who already invest into UK (with the same program).The plan is to start with lower budget "buy to let" and find the odd good deal to flip a property for cashflow to reinvest.

There is every level of experience there and many people willing to help and give advice.  

It's being sold at a lower market cap rate. 

Often this will be in lower class neighborhoods where that higher rent to value ratio compensates for higher tenant turn over and other related issues.There are places where you will only hit 1% or 0.8% but tenants are low maintenance, properties are in good repair and that kind of return still makes sense.Regardless of which rule you follow, you will still need to analyze the entire deal and determine if it really cash flows.If a property that fits the 0.8% rule cashflows $300 a month and another property that fits the 2% rule cashflows $50 a month, which would you prefer?

A lot of people look to Boise because prices are lower and it is a growing area.

Normally people do not like to move in the Winter, and the prices are usually lower that time of the year.

I wouldn't be surprised to see vacancies of 45-60 days for areas that have lower demands.