Assuming 25% of income for rent, which is probably low for what most people actually pay, you are talking about a resident earning between $26,000 and $30,000 before taxes.  

In addition, the property tax rates in the state are some of the lowest around, which makes a big difference. 

I also have access to leads such as expired listing, probate, tax default, NOD, Absentee owners, and etc.

I know I can't write off the lost income, i.e. if it'd rent for $2,000 a month, and I donate the use of it to the church, I can't write of the $2,000 as a charitable gift.I know if I just treat it as a 2nd home, I can write off the mortgage interest and property taxes, but how do I set it up so I can write off the entire mortgage, insurance, utilities, etc?  

Find out the taxes for the year.  

What I keep finding out is that my target price is always at least 20% below seller's asking price.Here are my rules/metrics:total economic loss after property is stable is 12% (15% in lower quality areas)incremental rent growth after the property is stable is 2%expenses grow by 2%/yearproperty tax is 90% of the purchase price multiplied by a local tax rate (usually doubles tax from whatever seller pays)payroll $1000-1200/unit regardless of the property size (brokers claim that 30-units don't need payroll but I don't believe them :-) )reserves of $300/unit counted in expensesexit cap rate is 100 basis points higher than current cap rate (e.g. exit at 8% if current cap rate is 7%)cash-on-cash ROI 10%+ starting in the second year; first year may be lower if this is a value-add5 years total ROI (assuming sale) is at least 100%IRR 15%+ over 5 years (al ROIs are net to investors after 20% sponsor override)I can adjust may metrics to some degree but in order for me to get to the seller's acceptable price I have to adjust most or all of them to unsustainable levels.So, what should I do other than keep underwriting and waiting until the market turns down and all of a sudden my numbers would make sense for a seller?

Inspection cost-Lender fees-Closing cost-Mortgage payments-Property taxes-Utilities-Insurance-Commissions-Selling closing cost-Home warranty-Termite letter-MLS fees-

I know the strategy is similar to Wholesaling for marketing (postcard/yellow letter, Etc.) but I was wondering if anyone has purchased Raw land from Ebay/craigslist, Delinquent County Tax sales (OTC), Etc and been successful in the resale?

Hi Mary Anne- I use Garson Soe in Walnut Creek.

Pike township.Purchase price is $119,900Rent: $1,17520% down + closing cost: $26,858Principal + Interest (4.75%): $500Property Tax: $200Insurance: $60HOA: $18Property Management (8%): $94Vacancy (5%): $59Maintenance (5%): $59 Assuming I get $1,175 I am looking at $185 cash flow for a 8.2% CoC return.