I have actually had applicants rule out a property because it had an electric stove.

Especially when I see a million signs around with a million different agent names on them.I got into the classes to learn more about real estate and some of the rules so that I could invest in buy and holds.

If you plan on obtaining more real estate prior to the tax returns getting filed and therefore have no rental income reflecting on your last schedule E then you may need to tell the story such as you have done here and show them past reservations, etc. in order to justify the likelihood that the income will continue.

Anyways, I'm curious about the rents, and what they would be running it through the 50% rule.

If I leave you with nothing else, some rules I live by are don't buy a buy and hold and count on appreciation, buy it for monthly cash flow.

With that being said, it comes down to the usual rule of "Location, Location, Location".Merrillville is better, but also has some better areas than others.I have holdings in both areas, so if you want, connect with me, we can discuss the areas and the strategies.

We have 2 new additions to the family on the way and need more space but, I can't justify buying another house here during the bubble.

If you were going to put a rule of thumb to work I would say it is probably going to be hard to make competitive returns on your investment in such a high priced market.

If so then the tenant has to adhere to not only that programs rules but the housing authority's rules as well.

Amy,Anything more than -20% equity is a good rule of thumb where it is past the point of any type of sub-to or creative financing deal is possible.Larry Chafe