If the cost to build was exactly equal all over the country, the discrepancy would still remain do to the values of the dirt.I believe that we will have the run up in prices over the next few years and when the charts show the bubble can no longer be sustained, it will be time to jump ship.

Ask yourself why the PV is not equal to the loan balance if you are solving with the mortgage payment, rate and remaining term.

A gun is the equalizer between a 135lb person and a 200 pound person.

Yeah, fun...Last few years I have been able to largely break even given the mortgage payments and taxes were about equal to the rental income.

Education always helps but is not vital.

If I were to buy a house at the end of November 2012, I would get a credit equal to 11 months of taxes.

So I'll be pulling comps for recently sold homes, with my criteria being something like +/- 200 sq ft, equal bedrooms, equal bathrooms, within a 1 mile radius.

The question is can you allocate your money elsewhere and provide a better return with equal to lower risk?

Unless it was significantly less.If all things were equal, and as an example, lets say the ARV was $100k, then I would adjust that down about 15%-20% and use that figure as my new ARV for a non conforming property like this.

Just FYI-not all these boom towns are equal but there still is great opportunity if you do it right.