ROI comes from low vacancy rates, high rents, and emerging/growing cities.

However, you can also have a retirement account (like an IRA for instance) that has, as one of the investments, a money market account within it.

You might also look for demographic information like is the area growing or declining, resident info, income, etc. check with the Chamber of Commerce.

I decided long ago that I want single family homes in B & C class neighborhoods that are sustaining or growing in population.I come across a lot of investors at my meetings that are encouraging me to invest in Cleveland multifamily homes because the cash flow is so amazing.As mentioned in previous posts - I have a business that provides me with 6 figures + right and growing - so cash flow is not a problem.

At least they weren't operating a "grow house".

For instance, by statute NC law exempts the licensure requirements of 'casual' note investor of 5 or less notes/year.

Thank you, its almost my biggest fault at the same time, its difficult to grow a business when you spend time making little things "perfect" all of the time.

For instance, if an apartment complex is 50% occupied, then use that percentage.

There was an instance before of one investor I knew who bought a house at auction.When the city annexed the area years ago houses had the option of connected to the street sewer and the city did it but it costs many thousands of dollars.This particular property owner connected to the street themselves without telling the city.So the new owner buys it and city wants to impose unknown usage charges and fines for years of illegal hook up.The property was having bathtub and drain issues and at first the new buyer couldn't figure out what was going on.The previous owner didn't also decommission the old sewage tank properly.The city worked with them to refix the line but they still had to pay reduced fines etc.

Jonathan look up the taxes and divide by 12 to get monthly tax costs.Look for the HOA docs to see if there is an assessment and how much.Usually if you find a listing on MLS in that subdivision there will be some houses and it will list association dues monthly or yearly.For instance if taxes are 1,000 and HOA 1,500 then you have about 208.33 a month in costs.If you buy for 4,000 and hold for 2 years you have to get at least 9,000 in 2 years time to break even and even more with closing costs etc.That money will be dead not generating a return for you.You also need to know the soil sample and build ability of the lot.This will be a factor from who buys from you if they want to build a house.On the MLS you can see what developed lots are selling for.Is this lot developed and cleared with pipes sticking out of the ground or does it still have all the trees and uncleared and ungraded in it's natural state??