Study your state's tax deed rules.

I'm also not a big rules and red tape fan either, many COAs I've seen require their own application from the tenant which can really slow down my rentals.

Sean Breslin, EVP at Avalon Bay (one of the large apartment REITS) who was also on the call said that one dynamic that they really look at when selecting markets is job growth vs. new supply and sure enough M&M Research had a slide on that too: The rule of thumb that you hear from the institutional guys is that on average it takes about 5 new jobs to fill a new unit.

These esoteric 2%, 50% rules...

However, the rents in the Bay Area don't seem to justify home prices.As far as returns, I'm shooting for a cash-on-cash yield of at least 15%

I used to write everything down on scraps, then I graduated to ruled paper.

Around here that may justify razing the home and rebuilding as the lot prices are over 10pct of Arv.

Those that have broken this rule (now up to 6 after seven events over a 3 year period) are never allowed back.

Using the 50% rule?

Those can be ruled unenforceable.