If that were rented, my gross rents would have been $319,006, and maybe a little more in expenses on the commercial property, but not $45,000 worth.So if you are saying that the 50% rule is a maximum, I would tend to agree.

This is a very inexpensive property.

I am not an accountant and you should talk to someone if you are truly confused but wouldn't the $12,000 in additional "income" be offset by your additional $12,000 in expenses making the increase in income $0

They should be able to demonstrate the ability to troubleshoot, solve problems themselves, call a cheaper handyman, before calling in expensive experts.

I need advice on funding the deal.I currently have limited funds (due to the Dave Ramsey pay off debt snowball), so it's making closing this deal a little more difficult.Here is the dealTri-Plex – 11.8% CAP Rate – 20.56% COC ROIPurchase Price $105,000 ($2,000 non refundable deposit to secure this property)Current Gross Rents = $1925/monthExpenses = $8328 (Taxes, Insurance, Utilities, Maintenance) Value Add in expenses by charging monthly fee to tenants for Water and Gas current owner pays and is in above expense.Washer/Dryer in units.Top Floor 1 Bed 1 Bath - $650/month - $40 Late fee starting on the 5th of the monthMiddle Floor 2 Bed 1 Bath - $725/month - $40 Late fee starting on the 5th of the monthBasement Unit - 1 Bed 1 Bath - $550/month - $40 Late fee starting on the 5th of the monthRent = $23,1005% Vacancy = (1200)Expense = (8,328)NOI = $13,572Cap Rate = 11.08%CoC = 20.56% after debt service of 75% LTVReturns calculated with $15,000 in renovation expenses once tenants vacate.

With no limitations on growth, undeveloped land remains inexpensive.

California investors buying inexpensive midwest properties that look great on paper but the reality is often a nightmare of repairs and non paying tenants...

With so many inexpensive homes there and the median income being so low it's a tough market. 

They are in most inexpensive markets.

He purchased a relatively inexpensive ($210k), 3 bed 3 bath townhome.