It's a trade-off only you can evaluate (though I certainly know which way I would lean).2.

Hi there,I have a similar question - we are currently evaluating a potential acquisition of a large MFH in Texas which has asbestos in encapsulated areas.

They are doing evaluations on distressed product for the banks.My point is that I am seeing appraisals that are GROSSLY overinflated by appraisers.When I look at their numbers I just shake my head.I am a numbers guy and will admit when I am wrong but will also defend my value when theirs is nonsense.I see everyday when asset managers send me their lists once a month of 75% overpriced junk and a few gold nuggets in there.

If you use the 2% and 50% rules of thumb in evaluating price (and there is a lot written here on BP), you'll find that all too often prices and "cash flow" in the retail market are defined as Rents less PITI, a very short term possibility, but a certain long term cash loser.

Less "rocking the boat" at first doing it this way.Once things are settled a bit, then you can re-evaluate switching over to your lease.

You need to re-evaluate how you freaking live, and stop being a townie.

As you may know, being a good listener and problem solver is key, so once you evaluate you have a truley motivated home seller and you know their problem, you must be able to find a solution and good negotiating techniques really come into play here.What you should be telling them is that you can solve their problem and buy their home for X price and once you have agreed to terms and contract provisions, you get it under contract.

I would work on the price, and do a FULL evaluation of ARV based on at least 4 comps (I prefer 10) in the area in the past 3 months, go back 6 if you have to.

Best way to evaluate a neighborhood is to frequent it.

Based on 50% of your rent going for taxes, insurance, maintenance, property management. and vacancy allocation, you would have a net income of :8500/2 =4250 x 12= 51000 annually divided by 350000 invested =14.57% this however is only the beginning of your evaluation. you now must consider the market that each of these properties is in and look at vacancy rates, crime rates, current rental rates, quality of the leases in place, and deffered maintenance.