In those particular instances, the cash flow trumps the return.

They have a particular form that you need to fill out.

So far, as I delve into this particular niche, the biggest learning curve for me is the art of recognizing potential deals.

Did you design the rehab yourself..like picking out materials tile, granite, cabinets, paint or did your contractor take care of all the particulars?

Think about zeroing in on a particular niche.

Then, when they call you let them know that you just sold that particular address, and ask if he/she would like to be contacted on the next one you get similarly spec'd to the one on the sign.

You really opened our eyes to looking out of state and in particular turnkeys as we were continually running into walls and negative profit margins here in So Cal.

Given an otherwise equal choice I'd always go that way.I think (in this particular situation) that you have a slight advantage in selecting a tenant if you tell them up front that you live right next door (or upstairs) and like to keep a pretty mellow environment.

So - while we account for the various items allowed for in the 50% rule, we just do the math on each property we are at all serious about.One issue I have with that particular rule of thumb is that we do conventional 80/20 financing with 15 year amortization.

I could venture to Jersey, but to be honest I'd like to concentrate more on the NYC area as I have more connections here and I think this particular area will be getting more and more expensive in the next decade.