If the audit leads to a different outcome, and your point is still arguable, appeal to an investigator or higher level auditor.

I will have to investigate and see what they have to say about this.

.$500 dollar properties can turn out to be environment disasters some can be under orders for demolition etc There is a lot of liability in buying a property with out an expert investigation

My wife and I were in Reno recently investigating the potential for buy and holds.  

However, upon further investigation, buildings are *really* expensive.

I actually started reading the BP beginners guide...exciting stuff.I will investigate the REIA club meetings too.

I follow strict models with the 1% rule or better in my investing and I'll be doing a great deal of investigation into my future partner(s) and markets.  

Also, given the funds you have available, I'd recommend you investigate deals where the seller is prepared to offer financing.

In any event, it's a rule of thumb to allow you to decide quickly if a property is worth investigating as a potential investment.Vacancy rates do not influence the rent ratio, nor do repairs or capital expenses.There is another rule of thumb called the 50% rule, also used for quick and dirty analysis, that states that you should assume that half of your rent should go to expenses.Even if a house does not seem to have issues requiring repairs and is in an area where there are no vacancies, assuming that both of these will occur during your analysis will ensure you cashflow rather than having to reach into your pocket to cover repairs or a mortgage payment.Good luck!

I have a few contacts now and look forward to investigating the area further.