You'll need to talk to an accountant on this.Regarding your deal analysis, what is the landlord getting for rents and what can the market support (i.e., can you increase rents and still be competitive)?

Each deal deserves close analysis to weigh the rewards for each partner.Pete, very nice post.

Based on my pay/allowance calculations, I want to keep my purchase price below $215,000, to leave room in my budget for renovations/repairs/taxes/unforeseen expenses, and will base my final purchase price on comparable rental properties in the area.After 3 years, I would classify the property as an investment property, and hold under an LLC - relevant laws permitting, I would be my own landlord.

Hey Tod Radford -- We've got a tenative schedule, but I don't want to make any announcements yet until we're as close to finalized as we can get.

Jerry,Another Jerry here and I find your analysis very interesting.

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.

Just hit it with primer as your final paint finish.

Just as I was about to close, the bank took forever to return my calls and finally said the house was unlivable since it lacked a heating source.

I'm finally seeing the tax benefits of owning rental property.

He has been told that he has the best offer on a home I believe in Queen Creek Cave Creek but has still been waiting for two months for the final answer.