The 2% is just a screening tool and I always also consider the cash flow and equity.

Closing costs about $17.5K) If you get 10% appreciation and the house is worth $266K, then the $9K paydown isn't very significant.Consider, though, and falling or flat prices are, IMHO, a very real possibility over the next few years.

He would flat-out finance a deal for us, to start flipping properties..

50% is a perfect screen test and is easy to do in your head.

Take it from a multi millionaire REI who's been to college and can tell you flat out that that course that you can buy for $40 bucks (used) will give you a far better chance at becoming filthy rich than going to college ever will.

There's already a link on this board on these Abbreviations.Look on the left side of your screen and click on Real Estate Abbreviations.

He expects to do a lot better on the overall deal but uses that as a screen for year 1.

Here's a partial list of frustrations.When the computer arrived it had narcolepsy and I don't mean the screen going black every 10 minutes, I mean the screen went black and the computer turned off every 2 minutes. 3 hours on the helpline and reloading the operating system fixed that.

You can attempt to meet the lenders in person , but that's another story of social engineering.Anyways, the comissions vary from bank to bank , lowest i've seen has been 2% regardless of listing price, i've heard of some banks doing a $500 flat brokerage fee.The comission isn't the problem , the problem is YOU are the one that picks up the tab for the electric, water ,and any maintenence that's done on the property (From most vendors).

Meanwhile I'm glued to the screen checking my account constantly.