You should factor in both the time and expense of fixing the addition (if it needs it) into that equation.

IMHO 20000 mail pieces at once equates to a MASSIVE failure until you have a systemized business.

It's definitely not the most "user-friendly" method, but it tends to take most of the uncertainty out of the equation.

The 2% Rule is the same thing as using the 50% Rule and applying a 12% Cap Rate on the annual NOI.I was looking at some properties and noticed I got the same value using the 2% rule and using the 50% for an estimate of NOI and happened to be using a 12% Cap.Being a math dork I did write it out symbolically and they both reduce to the same mathematical equation (Which BTW is just multiply the monthly rent by 50).

If we get past affordability peak on the backs of life-time low interest rates, he's not excited about being part of that equation. 

You have half the equation, the contract.

I am assuming that is your 0.70 factor in the income equation. 

Make sure these costs are factored in your equation. (2) Have you ever property managed before?

in my opinion of the most crucial parts of this equation is takling to a lender before you do anything....a smaller local lender will be more investor friendly..when you wrap your mortgage with a contract, the attorney may or may not want to put a 2nd lien on the property to protect the end buyers...you should make sure this is ok with your lender before you pursue

Most people typically buy in this area that I am looking at.Numbers are as follows:Property Type:2005 yr built 4 BD2.5BTH2096 sq ft.3,700 annual taxes$61/sq ft.Anticipated rent based on recent comps: $1,360Tax/mo: 308Insurance: $125 (guess)Management fee (10%) = 136Repair reserve (5%) = 68Vacancy reserve (5%) = 68Total cost before mortgage = $706 (just around the 50% rule)Anything else (costs) I am not anticipating in this equation?