My goal at the start of '09 was to finish the year with at least 10 units and at least $1,000/month in passive income, not counting principle paydown.

However, the lender will only count some fraction, 60%, I believe, since you would have to pay the taxes and penalties to actually use this money.

Assuming net income is $9400/month with operating expenses @ 40%, then monthly NOI is $5640.Annual NOI is 12 x $5640 = $67,680.I wouldn't count the "potential" income from the other lots...no reason the seller should get paid for income he isn't generating.Given NOI of $67,680, the value @ 10% cap would be $676,800.From that, you might want to subtract the maintenance costs to arrive at a reasonable price.All that said, I wouldn't take the seller's word for the 40% expense ratio.

That's possible, and probably likely, but don't count on that.

Last count I heard, the county were looking to condem and demolish some 30,000 properties, which would help out the overage in housing in this town currently, but as it sits most of these houses are just abandoned, and boarded up if your lucky.

Presumably you won't have to evict yourself, or wreck the place, but then you'll probably do maintenance and improvements that you wouldn't do for a rental.So, bottom line is that you need to count on kicking in $1500 a month into this deal.

I am officially lobbying for our fearless leader to add some new awards to the sight in response to the rapid advancements here.

I am the first to have crossed the 20,000 influence level and would like to see a 25,00...

Count my blessings, at least daughter will be CPA, but 19 and 17 just want the car keys, not willing to pay their dues with BPOs etc, where did I go wrong, LOL.

Then he'd say that my income didn't count, only his mattered.

There are some very specific activities (all involving material participation) that are considered qualified, and if you're doing things outside of those, they won't count towards your 750+ hours.