Aaron McCarty if you look at the formulas/metrics in isolation then the numbers don’t mean much.The formulas/numbers is all relative, especially as everyone/business has different goals and risk tolerance.Compare the results to the alternative, example: compare the historical stock market return on blue chips to an A class area.

Very high risk in a sellers market.

However there is only 10 days or so left and I'm trying to mitigate risk and not start a legal battle if all will just be well at the 30 day mark.My question pertains to the back tenant and the deposit i already have on hand from the sellers and if i can use it to pay the back tenant deposit back.... they haven't responded yet but i asked the renter if they used their deposit for last months rent from previous owner...

@Allen Collier, I would not risk suffering a vacancy at a time that will be difficult to rent the property.

So it may be wise for you to get yourself educated for a bit first and put the money into a low-risk liquidatable investment or savings account for now.Lastly, I swear BP isn’t paying me to promote this book, but I did recently buy and listen to the Audible version of the BP Publishing book by David Greene, Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties, which you can find on the BP Store or Amazon.

Investing is very high-risk, most will fail in real estate primarily due to lack of knowledge.

Business license, permits, random traffic, neighbor complaints, grease fire risk....and the list goes on.Send them a cease letter (in AZ it is called a cure notice) to correct the violation. 

Any and ALL of these actions can affect your credit score...EVEN a credit PULL can affect it (inquiry).The fact is, ANYTHING that assumes you are taking on more credit equates risk for the lender. 

Hello BP, I'm fairly new to the world of real estate and trying to obtain property; I learning as much as I can but I'm also not afraid of taking risks.

In the same 3 to 5 years, you can exceed your expected ROI with much less risk and very little work.