Usually investors have a target cap rate they're looking for and will make an offer that will achieve that rate IF all of their assumptions to produce NOI are correct. http://en.wikipedia.org/wiki/Capitalization_rateEDIT: 500th post - wooo!!

You need to check your local residential rental laws to see if you would be impacted similarly.Assuming you want the rental period to remain monthly If your tenant wanted to pay bi-weekly as opposed to semi-monthly, I would insist that each payment remain $1000.00 to ensure rent for the month is payed in-full by the first.At the end of the year, you could carry forward the extra 2K accumulated to the first month of the next year.If his pay is going into a bank account, I do not understand whey he can not simply schedule a recurring {semi}-monthly payment to you for his rent rather than have his employer implement another payroll deduction {it is possible you would not be an eligible recipient}.

You have to adjust your flip to your target area/demographic.I guess it doesn't matter if you stay on budget and sell it fast!

@Joel Owens is right on target, this is not a project for a first investment.As you originally posted, this one is tricky.

So I am thinking it is the poverty level market that would be a nice target to invest in, more less a neighborhood, or investment type, people need a roof over their heads regardless.

Heres the basics:SHORTSALEARV: 155-160kBPO target: 140k(I will be there to do everything I can to influence price)Target purchase price:112k. 1st of 220k (WF) and 2nd of 60k (handled in bankruptcy court and home owner currently paying it down)I am pleased to say a family friend has chosen me to handle their short sale.

We also take a close look of the pictures of each rental property listed so we could have a realistic rent target with the one we plan to buy.

This has been targeted as a red flag as to fraud issues due to brokers and dealers assigning insufficient collateral leading to investor's loosing money.Again, review what was mentioned relating to contract law and predatory issues.You might begin to understand now my issues with "finance gurus" or those with limited knowledge suggesting and even doing their own thing in financing.Never use a note or security agreement or any financing contract that has not been reviewed by an attorney or at least someone with a formal education in financing.Lastly, I have never met an attorney who would have an initial reaction to giving a 60 year old lady a 37 year fixed rate note as being a rational and informed decision by that lender in any installment sale.

I am in the process of researching how to buy a decent list to market to.My criteria is as follows:Absentee ownersSFR (3-5 bedrooms)Owned 7+ years40%+ equityI used listsource.com to target my hometown and found 3,430 leads.

I keep track of all the properties that enter the Extended phase in my target buying area.