I tend to like to buy property that has other value add potential or other features that could lead to greater appreciation.All other things being equal it makes sense in my mind to consider non-numeric features that could contribute to appreciation.

However as you noted employment bases are crucial and are generally good foundations for tenant supply.

The process involves seven crucial steps which I will briefly explain in this article.

At BP, we have established that 50% of the market rent will equal your expenses.

I've talk to the owner and 160k was his lowest, I talked him into $157.5k, here are the figures:Cost Basis $157,500 Less Mortgages $126,000 Equals Initial Investment $31,500 Ratio InformationLoan to Value80%Cashflow / Initial Investment39%Cashflow / Assets8%CAP Rate14%126k loan $793/mo @ 6% @ 25yrPOTENTIAL RENTAL INCOME $42,000 Less: Vacancy $(2,100)GROSS OPERATING INCOME $39,900 OPERATING EXPENSESReal Estate Taxes $6,000 Property Insurance$1,500 Repairs/maint $2,100 Utilities $7,500 Advertising $100 Miscellaneous $500 Snow Removal $500Accounting and Legal $300 TOTAL OPERATING EXPENSES $18,500 NET OPERATING INCOME $21,400 Less: Annual Debt Service $(9,512)CASH FLOW BEFORE TAXES $11,888 Add Back: Principal Payments $2,267 - Depreciation $(6,300)TAXABLE NET INCOME (LOSS) $7,855 Property is all brick, new roof, remodeled kitchen and bathrooms, copper pipes, newer electrical, new furnace, no landscaping.

That is, you made a loan equal to the amount of the short sale.

The means I divided the deposit (which was first and last month's rent) into equal amounts over 3 months.

The exchanges look the other way because of all the revenue earned.Hedge fund managers run equally complex processes, with armies of PhD's, lots of bribery-induced insider trading info, to also outmaneuver the little guys.It just seems that real estate offers a much more level playing field for the smaller investor due to the sheer physicality of it, the need to see it, touch it, do accurate rehab estimates, etc.

Prepare by keeping up with your bookkeeping every month so you know how much your expenses are and how high you need to raise the rents in order to operate profitably.The best time to deliver the rent increase notice is right after tenants have paid their rent, when the have put rent out of their minds for another month and it's no longer a matter of immediate concern.Normally any changes in terms of tenancy, including rent increases, require a lead time equal to the rental period.

Pending equals not guilty yet so I can see that.The damage a grow op can do to a property is amazing.I watched some Mike Holmes episodes and some law enforcement videos and the damage is huge.How strong of a renter are they??