Taxes are $500 a year and insurance would be cheap for me.Here are the numbers :14% Cap RateTotal Monthly Income: $375.00x50% for Expenses: $187.50Monthly Payment/Interest Payment: $134.90Total Monthly Cashflow using 50% Rule: $52.60One benefit is this house is two blocks from my house, and is in really good condition.What does everyone think about this deal?

-Is there a rule of thumb for pricing single family homes compared to apartment complexes in the same area?

I am a firm believer in setting firm rules and expectations with tenants and PMs.

We certainly have some good companies represented here but don't assume that because anything here that might be advertised has any endorsement you need to do your due diligence on anything you do in RE.Turn key operations can be ripe with fraud or scams, there are those that have picked up very cheap properties, put lip stick on, put a partner type tenant in at higher than market rates to justify a much higher price to sell the package.

What is it that you'll be doing exactly to justify splitting the profits?

It's a good thing though :)Since buy & hold is your aim, check out this video if you haven't already:I use this rule of thumb to evaluate every deal I come across.

I am wondering how to use certain rules (such as 50%) to know if this is a good deal.

I think our MLS rules are within 1 day Sold status has to be entered and for a new Listing must be activated within 2 or 3 days (don't recall exactly) of the contract date.

I will keep it in mind.Jacob, I am also finding it difficult to purchase property as the rental prices do not justify the asking prices.

@Jon Klaus I think the juries still out on what the rules are going to be.