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.

The range is impressive though - for Class A properties the range is from a low of 3 to a high of 7.8.

They are convenient (locations almost everywhere) and have a range of products for the small business owner.

If I were to do something like this, what should I be aware of and what pitfalls should I look for.What he's looking for:Investments in the 30K-40K range (you're welcome to invest more if you like)12-18 month term What he's offering:13%-14% returnPaid out monthly Here are the highlights: -Business is a boutique lender looking to expand capital-Provides short term loans to builders, both commercial and residential-Long track record of success -12-18 month term-Offering 13-14% annual return, paid monthly-Your money would be held in a real estate attorney's trust

A range of comps from $88K to $218K is way too large.

My first Post:I've read the other posts here and in other forums about JA which were mixed.Heard of investors getting in hot water with the attorney general and sued through this IP method.

Submeter Water and Sewer and Trash: By installing water meters and billing the residents back for water and sewer and trash you are in effect increasing your bottom line.

Insurance and water is included in maintenance.

If you cannot afford the occasional water heater blowing up, you are better off renting.If you plan to flip, then 90 to 115k is very, very thin - 50/50 that you'll lose money.

I was thinking in the 3-10 range.