Just to clarify what Mike is trying to point out...A good rule of thumb for many residential properties is that expenses (including vacancy, maintenance, taxes, insurance, upkeep, administrative, etc) will generally run between 45-50% of gross income.

Sure, its the June 19, 2008 Realty Times, "Holding Property in an LLC Just Got Tougher" by Diane Kennedy"Freddie Mac, one of the two largest underwriters of conforming loans on the secondary market, have changed their internal rules to state that they will no longer refinance a property that has been inside of a Limited Liability Company (LLC) for any time within the past 6 months."

Some forums are a PITA, but BP RULES!

If you turn the "50% rule" upside down, it says the rent must be more than twice the P&I payment for a landlord to cover their expenses.

We all know Bud is the king of beers and rules beer sales here in the USA.

My plan is to buy and hold and most of what I find looks like the figures below, which is actually an REO I am going to make an offer on on Monday:3/1 and 984 SFListed for 77,900Estimate Appraisal: 93,500 - 114,000Sold in 2006 for $110,000 - but that was during the boom...Will Offer: 69,000Bank Loan: 80%Down Payment: 20% - best my area offersTaxes: 1693.00Insurance: 1,100Repairs: approx 6,000Will probably rent for about $750 - rents not = to the 1% rule in Ocala.After I figure the taxes, insurance, 5% vacancy rate, 8% of income for maintenance (don't really know how to account for this as I'm a newbie), $210 electricity/water holding costs till rented per year, $200 for advertising to rent it per year, my OE are at 48% of my operating income . 8,400 - 3855 = 4,209.I will have 4,209 left to pay P & I, and I will be negative a couple hundred dollars the first year.

Some that done have any restrictions to how many are owned/financed.

I would NOT provide access to the lockbox, as most MLS's have strict rules against this.

Creative financing is another pit that many people have fallen into recently, withadjustable rate mortgages, balloon payments, hard money lenders and Being a landlord can become a pit.It's all about what you know about solving or preferably avoiding each of these potential problems.If you don't know you should find someone who does know.When I first started investing in real estate I learned one very important rule, DO NOT LOSE THY CAPITAL.It seems obvious but it is the only way that you can lose in any knid of investing.

As far as the do's and dont's, you must follow the IRS rules and guidelines as they pertain to qulaified retirement accounts.I do have another thread here on BP talking about self directed IRA's, you may want to read up on them.