., can you increase rents and still be competitive)?

The risks you assume should provide you a premium over and above a safer investment.There are also tax advantages that may come with an equity partnership, so you shouldTwo: A debt financing arrangement (a.k.a.

If I got new PCS orders, I'd probably try to rent the house out at that time, as I would have hopefully already established a positive cash-flow at competitive rents when I purchased.Brian,I see your point about being more clear in my reasoning for using an LLC.

It's just that with this spreadsheet, I can see how my competition bids.

It's based on too many assumptions that may or may not be true, and can lead to both overpaying on a property (to the point of not being able to generate a profit) or under-bidding on a property (to the point of not being competitive and not getting any deals).I much prefer to use analysis techniques that take into account the actual cost of capital for the individual investor (are you using your own cash, borrowing hard money or something in-between), the actual cost of commissions and closing in a given demographic (sometimes the seller will pay buyer closing costs, sometimes not), the actual time you expect a rehab to take (a six month project has vastly different holding costs than a two month project), and the risk on the project (is 15% return enough or do you want 20-25% returns on more risky/costly projects), etc.70% rule is lazy (IMO) and while it's fine for a first-pass analysis, if you use it to make buying decisions, you may find it impeding your success.

time=1328029595#.TygfoABGxSE.facebookshows Phoenix +0.6 in home prices which makes sense as I've seen some difficulty lately in getting expected discounts and more competition.

I'm hoping we do stay in this "bad housing market" for a while though because I would like to be able to take advantage of the deals available.

(We took advantage of the really nice weather here in Michigan).

The Western Maine Mountains are flooded with Agents, and even thou I believe I have something different to offer clients, and a fresh view, I still can't find anyone who wants "more competition" in their area.

I determined I was comfortable getting a maximum LTV with a small down payment is possible just to take advantage of the low interest rate.