They rent them quick and gross about 1200-1300 and net about 700 a month per duplex.

Technically, the correct answer is your "net sales price," which is your gross sales price less routine closing costs.

The carrying cost of the land before you cash out is a major consideration.If you buy a residential lot for example for 10k and it sold at the height for 30k and then held for 2 years it might look like this.10k in, holding costs of property tax and HOA of 2,400 a year by 2 years you have 14,800 in plus closing costs when you bought and when you sold.If the land doubles in value to 20k say you have 16k in and get 20k out for a gross profit of 4k over 2 years.You are getting a 20% return each year 2k off the of the investment.

If that stopped me that would mean I wouldn't have made offers on other properties that were making 20+ gross returns.

Total Return = Net Cash (Yield) + Net Gain on Sale (if any) / CostWhat you are trying to solve was your yield:Gross Yield = [Monthly Payment] x 12 / Cost (this is gross, as you likely have some form of servicing fee that needs to come out of the payment each month)The gross yield of the loan you are describing it is 14.42% Generically speaking, it looks like you are paying more for the loan than what should be the principal balance, provided your numbers are correct.

These things would be necessary to fit the renter profile that we are targeting.The 2% rule is wishful thinking in my market, which is a college town, and a 1.5% gross is more fitting.

I noticed there are lots of ads on CL Financial Svcs like this;Motel in Idaho looking for $250,000 secured by 1st deed of trust Value of property $500k to $650k add in 6-12 months interest reserve to the $250k, if you wish motel is operating and doing well approximate gross income of $100k for 2012 Prefer asset based, private money lender Questions welcome • Location: NW •it's NOT ok to contact this poster with services or other commercial interestsMy understanding is that this type of ad is in direct violation of SEC soliciting guidelines since they are directed at anyone who happens by.

This road map is a good plan, but what is the reality of finding a 4-plex with 2400/month in gross rents that is valued at 100K, let alone obtaining it for 80K.

At the end of a the day, I would be lucky to Gross between a half point and 3/4 of a point from each deal after the commission split.

The reason I believe performing PM duties for your IRA would be a no no as far as the IRS is concerned is the fact that such an item typically costs 8%-12% of the gross rents.