Here are my calcs.Purchase price - $230,000Renovations - $50Kdown - 20% - 46KClosing costs - ~15KLoan amount - $184KMonthly debt - $1225 monthlyRE + Ins - $300 monthlyTotal out of pocket - $111,000 (pretty high)--------------------------------------------gross income - $44000operating expenses - 50% - $22000Debt - $18300Net Income - $3700 yearly / 12 = $308 or $102 per unitWhat would be the right purchase price?

In 2005 I started telling my members to decrease their debt load, unload marginal properties while the prices were approaching the peak and improve their cash position.

"To be frank, since the TARP money came in, they are still selling off (properties at auction), but they kind of took a step back." . . .Real Estate Disposition LLC (REDC), which claims to be the nation's largest real estate auction company, held 300 ballroom auctions in 2008 and sold nearly 33,000 foreclosed homes for $3.4 billion -- a seven-fold increase in sales volume and nearly triple the proceeds the company generated in 2007.Company CEO Jeffrey Frieden said he expects to "smash that record" this year as banks and lenders continue to amass a huge inventory of foreclosed homes and are more motivated than ever to sell their inventory. . . .Some observers fear that if the massive amount of debt the government is taking on to stimulate a recovery, inflation -- and higher interest rates -- are inevitable consequences.

The foreclosure wipes out the debt, and the property is now owned by the auction winner.

If you do a short sale AND you get the bank to agree to not pursue a deficiency judgment.You can also get a 1099 for the forgiven debt.

For all married couples, always keep your debt/liabilities separate.

(Loans coming due - balloon payment, ARM adjustment, etc. properties with 50% or less debt financed, etc. and start marketing to them.

You may get a 1099 and owe tax on the forgiven debt.

My problem is when I try to obtain a loan I am told that my debt to income ratio is too high to qualify for another mortgage.

I am working with the owner to find out his current debt situation.