The big advantage is having the capital gains spread out over many years to avoid a huge tax bill.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

I'm assuming you are arriving at your cash flow number by applying Gross income - cap ex, maintenance, utilities, vacancy, tax, insurance, mgt, landscape/snow & Debt service?

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

(gross rents $4900; 8% PM; mortgage+insur+taxes = $3600/mo).

Taxes 10k HOA is 9k The current owner never did short-term rentals.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

Low property taxes (1.1%) and not a lot natural disasters as well.

And yes I have done one in 50 years in the industry.Facts:1. purchase contract and gave 50k up front to bring tax's current. 2. it was all cash no contingencies.3. seller just goes dark no response to anything.4.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.