I have been looking in Indianapolis because I have relatives in Indiana.

I can crunch the numbers for cities that have the best cashflows, but then the appreciation aspect was relatively low.

The homes are in A-Grade neighborhoods with relatively new roofs

They haven't fixed up the last unit because of an aging person on hospice care that they don't want to displace.

okay got another dumb question:( since I came across this post related to BRRR.

Big Money isn't always right, but it does influence economic activity and markets.When I investigate a dividend-paying stock (including a REIT), I compare its current yield to its average long-term yield to get an idea of its price relative to its dividend.

@Joseph Ziolkowski, yes, vacancy and cap ex are included, as well as maintenance, property management and property tax and insurance (but not Principal and Interest cost).Nobody can know for sure what its expenses will be in future, hence the ballpark "50% Rule", which can be fairly close in the case of middle-priced, middle-aged, middle-neighborhood type properties.

@Andrew Daaboul It is great that you are thinking of becoming an agent at such a young age.

I'm currently studying for the bar while simultaneously searching for a job, preferably in real estate law (or something related).

When looking at this item, should a bid be made based on what I would pay for the real estate itself and leave all the note related items out of the equation?