Factoring in a 30-year mortgage, $1,200 in annual home insurance, closing costs of $5,500 and maintenance costs of $100 a month, along with property taxes, he calculated that it would take a selling price, 10 years later, of $395,404 just to break even.

I have not raised rents in the 2 1/2 years I've owned it but have reduced the vacancy factor to near zero.

It's pretty straight forward and based on your pictures it looks like you've got an ideal candidate for it.

Since I'm new to real state investement, I wonder what would be the ideal return normally for a buy and hold strategy.

Interest rates have some effect or influence, but there are a number of other factors (unemployment, economic outlook, population growth, household creation/consolidation, consumer confidence, tax codes, etc.) that are more powerful in determining housing prices.

I realize that the economy and other factors may make it difficult to make this happen for some people, but look at it this way: All things in life that are difficult are the things worth going after.

Can I deal with just the owner or would I have to deal with the mortgage company?

Ideally we would already have another house in the works at the same time of sale.I am trying to avoid renting an apt until another house is finalized.

I know one of the ingredients was a Pool item (ph factor, chlorine ??).

Allison, age of the carpet could be a factor.