I am waiting on a pre-mls package from one of my source to evaluate first.

Another thing, when you apply for a loan for a second property, part of the evaluation for that loan is that you have been a successful landlord with your first property.

This will teach you how evaluate properties, learn the neighborhoods that are selling and you don't have to risk any of you own money.

See if you can get true cash flow after you calculate your profit/debt service/expenses and finally evaluate the DOM for the area.

I agree with the above statement to use the current numbers when evaluating the deal.

Both your weighted cost of capital and the 100% finance calculation are tools to evaluate the deal.

I think that it is bogus that he listed it for $40k then tries to upsell it....that just doesn't make sense to me and would probably explain why it has been on the market for 127 days now and not sold.I have not given them any money on this property and don't plan to until we have that bank approval in writing if we choose to move forward with that, thanks for the advice on that.We are evaluating other properties as well, this one looked the most promising for the price but as we have now learned, sometimes things are just smoke and mirrors.

The difference, I believe, is in systems and the ability to evaluate and act upon highest and best use of time.

One potential problem with this approach is that it cause the loan to be called in.A lot of loans, especially HELOC loans, have a clause in them that stipulates that the proceeds from the equity that you recieve as a result of the loan CAN NOT be used to purchase real estate.The reason for this is that they want a separate loan on each real estate property to be evaluate on the basis of that paticular property.So ask about any such clause when you first consult with your bank.

I'm new here, but I did read the long 2008 thread on appreciation, aside from some of the more flaming parts.

I'm very pleased to learn the rules-of-thumb for cash-flow, like the 2% rule and that...