(Yes, I realize you didn't ask us to analyze the property per se, but you asked for a reasonable offer price, which is absolutely tied to what will make the property a good deal, which of course requires analysis.)Bottom line, if you are absolutely convinced that it is a good deal at 1.4M, then take it at 1.4M.Originally posted by "littleivy":I have lived here a long time and have seen my home increase in value from 275K to 1M in the 13 years since we bought it....and our first home, which we kept as a rental, has increased from the 195K that we bought it to being worth about 850K+.I also won the lottery the last time I played, so I figure I'll be a shoe-in for the next time I buy a ticket.Have you seen this graph?

I found a apt complex which I ran through the property analysis tool but I want check with the experts here before I decide to pass since the numbers don't seem to work. I may or may not be doing it correctly.

Here ...

This is taking into account the average actual operating expenses in the US of 50%.If anyone else sees this differently let me know as I would be interested in seeing how you would analyze this deal.Thanks

All good info.What I would do is move as quickly as possible into Wholesaling.Here is where you earn big time while you learn.The difference between the Bdog and wholesaler is that you need to learn how to analyze a property to see if it is something appealing to an investor.YOu'll need to learn how to market, negotiate and contract.All the skills you'll need when you start buying properties yourself.The sooner you move into the wholesaling arena, the better.You're almost there.

Mike, I'm not too familiar with the methods of analyzing the property, can you explain how you calculate the "NOI" ?

I am used to analyzing micro organisms in the lab at the far rear of a building.

The big differences are SPEED of closing as rehab and I pointed out, and lower costs.When you are dealing with the low priced properties that some of us specialize in the higher interest rates, higher points and junk fees can make up a big % of acquisition cost.When you start analyzing what you are actually getting for that money, versus just dipping into your other funds you can see how much more sense it makes to purchase for cash.I think I recall tha nationwide the % of SFHs purchased for "cash" (real cash) is about 20%.

The major tax benefit of owning a rental is from a depreciation allowance, which in most cases eliminates taxes from positive cash flow.It seems that you have not really analyzed the rent rolls in your area.

Soooo. I was looking at some listings. I came across a 2bdrm 2 bath for 203,900. Similar properties in the area are selling for $300K and up. It needs a new kitchen, dual pane windows, carpeting/laminate, bathroom...

Think, analyze and consult with a few other's with experience and then most importantly, ACT.Also, what a great vehicle you have chosen for retirement!