.$69,479.67.But, you probably want to know where I came up with that number.These are for March 2007 through Feb 2008Scheduled rent $15,960/year (I think)Actual NOI $5,879/yearVacancy loss $3,664/year, 23%I figured that vacancy has some reason, so I dropped it down to 10% and added back the remaining rent of $2,068.

I've heard stories of towns in Norway that bought these and are now really in a bind with the losses they've incurred.

:D What you are looking for is GOOD deals and they come from motivated sellers.Think about what might motivate a seller; bankruptcy, divorce, death, job change, job loss, foreclosure, burnt out landlord etc etc.

., noisy, messy, and damaging) tenants.Rent $650Expenses $325NOI $325P&I $375 (75% of $75,000, 7%, 30 year fixed)Loss $50Not sure what you mean by "simple case flow", but thees look like money loosers to me.At those prices I think this must be Detroit or some other very depressed location.

Now they can' t sell and if there is an event in their lives that causes a loss in income they are in forclosure and can't get out.

Their insurance should cover the loss.

Hopefully, that 11% loss will translate into more money on the sidelines to invest in our real-estate deals.

If you assume a lower expense and overpay for the property, you could end up taking a capital loss when you try to sell it later.I think a better way to value a property would be to assume the typical long term expenses and then add back any possible savings in the initial few years when you expect items to be covered by warranty.

Possibly a loss of money for the note buyer when you take into accounts the risks ,such as defaults, involved in note purchasing unless they were looking to take the house at some point.Which explains why the offers you received were lower than the asking price since most of all notes are bought discounted to protect the buyers assets as well.

Again, there will be exceptions, such as self-employed or retired individuals as mentioned in earlier posts, but in the case of the typical W2 earner this is probably appropriate.Not that I agree with the loss of freedom of choice here ...