So what does “good potential” mean to you and what level of risk can you tolerate?

I mean the nerd term affectionately.

The seller will capture some of the potential and the buyer will discount the future potential against the risk and cost of achieving it and that means you will meet somewhere in the middle.The best way to figure it out is to build a pro forma showing the schedule and costs involved and figure out how much you are willing to pay to achieve your investment goals.

That means I want to focuse the next 5 to 8 years acquiring real estate. 

Rent-O-Meter has the rent at $934 for that area.My strategy is to develop relationships with loan officers that have relationships with people that can afford a home but can't qualify through traditional means.

I appreciate each and every single one of you that provides input, it truly does mean the world to me. 

of course this is where a developer comes to play .. and since I am a small time one.I can tell you that in markets that are robust.. land is a premium.. if it has to be subdivided and infrastructure built there is a small segment that can do those and have the means to get financing very tough..  

If your loan is a commercial loan (by commercial I mean any loan not on a primary residence) there is a VERY high likelihood your loan will be sold.   

What I mean is I was excited to close our deal on the duplexes and I made the numbers work!!!! 

Aside from that, does this mean that "vacation rentals" like homeaway etc is legal/friendly in most cities?