Property Management - 6% of gross rents plus monthly cleaning fees.

I am curious why you think the Tracy investment would be bad (140k / 1.3k) My math shows a gross return of 17.5% ($35kdown, $5k closing, 0 repairs, not including maintenance, vacancy).

Since there is currently $2,300 in gross monthly income.

Most advocate computing true cash flow more conservatively for single family houses, however (Gross rent divided by two, minus P&I).

- Be the landlord and take the gross rent, let's say $3000-3500 for kicks and giggles.I've only read about lease to own options, any cons with this?

I've done some research on prices in some of the areas people talk about on here where monthly gross rent multipliers are as low 30-50.

Cut your gross income in half to allow for maintenance, vacancy, management, taxes, and all other expenses (50% rule).

Ie, if one side would rent for 600 then I could apply 75% of that (450) to my gross income.

.* I'd run expenses/vacancy/capital at least 55% of gross potential rent.

Property price 22k condo turn key or very minor repairs.AnalysisLow side of rent 600/moP and I with 4400 down 95/moProperty Management 60/moVacancy 60/moMaintenance reserve 60/moTaxes 30/moHoa 135/mo(Hoa includes water, trash, sewer, insurance, exterior and roof maintenance.)Gross income 600 - expenses (including p/i) 440 = 160 Cash flowAnnual cash flow 1920 / initial investment 4400 = 43.6 Cash on Cash return.Some things I am concerned with is that the expense are above 50% of gross rents. 345/600.