What should the percentage of the tenant's rent be to their income?

I KNOW there’s mortgage fraud out there... including a small percentage of short sale flips.To Mr.

Unemployment here is running at least 1 percentage point higher than the national average and we're still among the top forecloser locations.I hate the doom and gloom, but we won't be depleting our foreclosed inventory any time soon (see 3-5 years minimum).

What I've done in the past and plan to do with my real estate business is take a set percentage of my after tax profits and use it for whatever I want.

If you financed it how much were you pocketing after expenses (you don't have to tell me numbers but maybe percentages).

I invest in commercial and multifamily.Number one mistake I see is sellers using "lease purchase" and "lease option" interchangeably.Lease purchase is generally a security deposit (down payment) on the property for a buyer to perform by a specific period in time or they are in default.The security deposit can create a beneficial interest in the property.The security deposit is supposed to not be spent and held in an escrow account until purchase.Lease option is where an option fee is paid by the buyer for the option to purchase by a specific date.Most times the option fee is non-refundable and usually the owner lease optioning can spend the money at will instead of holding like a security deposit.Buyers like lease options because the want to know they have an out.The reality is options are great for the seller because if the buyer doesn't perform and you get them out you can option again and again.Only a small percentage of buyers in options and leases ever end up purchasing.For that reason I like option money better.Kind of like repoing a car and keep getting a down payment each time.

. ;-)Now, let me not scare you guys, the percentage of the tenants that have sued me and have won is very low but it takes only one to bad case to take you off your game.

I’ve already figured a percentage each month for maintenance/repairs, tax and insurance.

I would go one step further and suggest staying away from the big firms that take a big percentage of your commission.

The gain percentage you should have been recognizing over the last three years is under the assumption that the installment sale would be completed in full and you receiving the entire sales price agreed upon.