Here is a link to the original video I did:http://youtu.be/QSBJCdkAhgIThis is a REO in Southern CA in a typical neighborhood, house had several negative features (backs up to main street with traffic noise, shared lot line, small lot).

If your rent for $2300/mo, you are going to run negative as that doesn't account for ANY repairs, maintenance or vacancies.  

As a CPA, I make complex things simple and simple things complex.I have a formula of Square footage x avg SF rents (Avg sf rents is from phone calling Sunday ads)(Since I only buy close to downtown (e.g. yuppies) I add $100 on top of this)Less PITI -Principal, interest on 10-20% down on 15yr mortgage -Taxes, insuranceLess depreciation=tax income+ depr (add back) - principal payment (deduct)=cash flowMy "business model" is net $200-300 per house (yours can be different)Agree w prior posting that debt service is arbitrary re 15 yr vs 20 vs 30 yr; % down; etc.I have a very successful friend who never pays 60x rent.

As for zillow use, I only used zillow to get an estimation of value.

Apparently they can afford a negative cash flow, or they aren't on BiggerPockets and don't realize there's going to be a negative cash flow.

If you have to borrow in order to buy in your IRA, the borrowed money will be subject to taxes that negate the value of the IRA - This puts you right back at point one.

I passed the state portion awhile ago but I'm having such a hard time passing the national portion. on practice cram exams I'm getting 90% and above but when I go to take it I only get 64% and I need 70% to pass I've took the exam 13 times. my biggest problem is that I don't understand some of the questions on the exam and spend too much time on them and sometimes run out of time. can anyone recommend me a practice test or something like that?

I passed the state portion awhile ago but I'm having such a hard time passing the national portion. on practice cram exams I'm getting 90% and above but when I go to take it I only get 64% and I need 70% to pass I've took the exam 13 times. my biggest problem is that I don't understand some of the questions on the exam and spend too much time on them and sometimes run out of time. can anyone recommend me a practice test or something like that?

I'm planning on (1) target potential, newly-listed leads (2) compare to similar properties (similar square footage, same number of bedrooms and baths, and in the same neighborhood)  that sold within the last 6 months (3) go physically inspect homes that seem to be listed below market value (4) if I see nothing wrong with the home, put it under contract and present it to my investors listAm I on the right track? 

(Great way to starting building a realtor-investor relationship)The bank makes the final decision regarding price after they order either a BPO or Appraisal or both depends on the lender.The short sale process takes usually takes 90-120 or longer days depending on the sellers cooperation and how fast the agent works with the bank submitting paperwork received from the seller but ive seen them go 6-12 months :(One warning really try and screen your seller to make sure there not using you the agent to just buy ore time in the property you must take there word on this but hopefully they have good intentions.The uglier the property for me personally I only love properties that look like the guy from lord of the rings (The Precious)Sorry for the lengthy reply just wanted to be thorough.Good luck!