Basically 7% of the purchase price in annual rent is what I look for.

Purchase price: $177,000 Cash invested: $68,000

-Lease to buy @ $930,000 (currently appraised at $890,000)-2 year term with option to purchase at the end of term-Non refundable 3% option fee of $27,900 -Rent $4700/month If purchasing at end of term: Option fee applied to purchase and 10% of all combined monthly rentIf not purchasing: Option fee is non refundableSeller able to break contract anytime with 60 days notice if agrees to pay renter 2x amount of option fee.

For reference, I purchased a new build in 11/2023 (to give you perspective).

@Geoffrey Paugam- agreed ...if you are  needing to use financing to purchase - make sure to have a full loan pre approval in place  before searching / offering for a new place . 

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(Sales price minus selling costs minus purchase price.) plus maybe 10% in state taxes. 

Can I take out a hard money loan for the 43K plus the 40K rehab amount and have him owner finance the rest of the purchase price to me?

Hi Victor, Possibly look into purchasing a multi-family and rent out the other units. 

Purchase price: $640,000 Cash invested: $1,200,000 Turned a shuttered and rundown 13-unit waterfront motel into a brand new vacation destination with added lakefront "tiny homes", for a new total of 20-units with yearly gross over 500,000 and cashflow averaging $40k monthly.