If you understand the business, you certainly don't need software to evaluate the deal.

I will follow on your advice to enter the property "with notice" so i can evaluate repaired .

I avoid areas where I feel unsafe.You need to do your own evaluation of the rents, and the prospects of getting a tenant.

My average insurance bite in Florida is now at two+ months rent, it was one month 10 years ago.Limiting the property tax increase to 10% for non-homestead is really just a smoke-screen for the continuing rise in taxes for business property owners.My average property tax bite is now at two+ months rent, it was one months rent 10 years ago.The housing recovery willed be slowed in Florida as buyers realize the implications of the higher bite of property taxes in any rental property evaluation.

Will,You are right with your analysis and the 1% rule is a basic tool for initial evaluation.

There's not enough information here to evaluate the deal, but one thing is clear -- you're bordering on mortgage fraud by increasing the loan amount above the sales price and pulling cash out.If the cash-out part of the transaction is not disclosed on the HUD (or made clear to the lender), you could potentially face some serious legal issues if you get caught.As for the deal, what are the anticipated rents?

Just like they say that you make your money when you buy, with a short sale, you make your money when you evaluate it.

The evaluation of the tax benefits from an Income Properties only serve to confound the issue when you are primarily interested in Cash Flow as the OP is.

A 50% rule evaluation would look like this: Rent: $550 Expenses: $275 NOI: $275 Payment: $363 (7%, 30 years, $54500) Monthly before tax cash flow: -$88 So, this doesn't pass the 50% rule sniff test.

Here is how I would evaluate this deal on the numbers.Gross rents: $2,400Operating Expenses: $1,200NOI: $1,200Less $200 desired cash flow ($100 per unit per month = $1,000, which is the maximum paymentPutting that in my mortgage calculator at 30 years and 7% interest, the maximum purchase price would be $150,308.