For example, they have the 1% or 2% rule of thumb - that a place that you can rent (monthly rent) for 1% of purchase price (e.g. buy for 100,000 and rent for 1000) will cash flow well.On the other hand in Brampton I talked to a man who learned from a guru to buy a 500,000 property and be satisfied with $150 cash flow from that.

If your looking for knowledge I would recommend CCIM and/or the UW's "Certificate in Commercial Real Estate" - I've completed both and have been extremely valuable in analysis.

I have no doubt that you and Johnson will do extremely well during the next housing market downturn.I may have some good news to share in late Jan or mid Feb.....Stay tuned.

I'm using FHA financing and everything has gone extremely well... until now.Despite asking my mortgage broker on multiple occasions if I'd need cash for anything in addition to my down payment, inspections and appraisal, he has just informed me that I need 3 months of reserves (about $3,500) in my checking account at closing.

My actual costs would be whatever I purchased the note for, and any legal fees involved in the foreclosure, but I would not be obligated to buy or satisfy the 1st mortgage from anything other than the sale of the property correct?

The only time you should skip contingencies is if the property is extremely discounted and you know it needs major repairs going in, maybe a flip or a cheap foreclosure, otherwise always do inspections.

For me, I felt noticeably different for several months and have no side affects today after extremes short term exposure.Needless to say, I'm a big advocate of CO detectors being prevalent in the house and being wired in with battery back up.

I think this too is extremely helpful because trying to communicate your thoughts and ideas from your mind can be difficult especially to a GC or a sub.

I didn't say the loan proceeds would be taxable, although there are some extreme cases where it could be, I said the interest may not be deductible.I'd start with a good conversation with a CPA familiar with the regs.

Hi BP, When analyzing an investment property 3 numbers are extremely important along with others; 1.