Typically 64% lands me where i need to be. assuming a 20k repair & contingency budget us adequate;230k x .7 = $161k - 20k repairs = $141k max purchase price of an investor. me personally I would be looking more along the lines of the following;230k x.64 = $147k - 20k repairs = $127k max purchase price. dont forget to leave room for negotiations when that those end buyers start coming along with standard 5% below asking price offers. dont fall in love with the deal. you need to understand why the above numbers are the way they are. this seems like a so so deal and that's assuming the 20k budget is adequate with the needed contingency, and throw a whole seller fee into it and it might be something to pass on. break out every cost and you will see how the 70% rule works regarding capital gains, purchase and selling costs for realtor percentages, holding costs, interest on money, prorated taxes, utilities, etc... remember, investors have to pay short term capital gains which is typically over 25%. it may seem like a big chunk of money using those formulas but in reality it isnt.

However; that too has its risks, and there has to be some safeguards in place so as to release funds based on work being done, etc. and not get to far out ahead of what's happening on the ground.

I think I probably would have more mistakes at that time, but would have come out ahead in the long run.

Just wanted to go ahead and introduce myself.

Also, I have the oppty to buy a property with a gov't program and I am moving ahead with that.

Sounds like a nice way to plant seeds, anyone?

Use the taxi cab technique and try to keep them ahead of the meter.

Monthly cash flow, appreciation, long term investment, quick flip, etc.Personal Financials - It sounds like you are ahead of the game here, but stronger financial sponsorship will be required for investment property.

I go ahead and contract one of the properties based on the short sale they have finally approved.

I have a formula of what to offer based on comps from the neighborhood, minus holding costs, repair costs, real estate agent fees front and back, and 4 months holding costs to be conservative.