Definitely do the math to make sure all the numbers make sense.

If I have done my homework, it is reliable security with good intentions.

Its all about doing your homework.

I know I can rent this place to college kids for $350/per bedroom ($1400).So my math breaks down like this:Purchase- $85,000Down Payment- $17,000Mortgage (80%)-$68,000 (@7%, $450/mo)T&I- about $200/moVacancy and Repairs (15%)- $210/moTotal Costs- $860/mo$1400-$860=$540 cash flowCash on Cash-($540*24mo)/$17,000=76%Cash on Cash w/ mortgage-($990*24mo)/$17,000=139%This looks to be a great deal...

But if you're going to invest within the city of Detroit, do your homework and work with someone who knows it on a street by street basis.

Looks like you did your homework already.

@Chris Haas - back before we heard all the 'rules' we just did the math.

Seems the South Florida market is so heated I either face a bidding war the first day a property goes on the MLS, or I end up getting the short end of a stick making bids on properties where the listing agent already has an inside buyer.I need to look for other ways to find properties, so I am going to give foreclosure auction a try.There is one property, which was a short sale, one I was interested in, but went under contract while I was doing my home work...and now apparently the SS fell through as I noticed it's off the market and there is an auction for it on 9/18.

Do your own homework.

I'd rather meet that criteria with a vacant property at closing than have deadbeat tenants in an less-desirable property.If you don't rush into anything, and do your homework, you will be able to find both