I figure 7.5%.You have to account for CapEx, even after a rehab. 7.5% is a safe bet over time.Insurance looks high.

What will be important to them is your track record of success, how they will make money investing with you, and most importantly why investing with you is safe and won't lose them money.

Over the years, I have tenants wondering if it's safe being the first floor, whether window bars are needed, asking about installing alarms etc.

He says most investors lost their shirts mostly for one of three reasons:- too leveraged and/or had short term debt- they were betting on appreciation and were not cash flowing enough- they didn't have adequate cash reservesThe theory is to protect yourself against these three things, and you'll be as safe as possible in a market correction.

I don’t feel safe, so I don’t look into those areas.

But also, theres a great opportunity to test yourself and grow in ways safe investments dont necessarily bring to the table.

For example, I live in Austin, Tx and it is an amazing city and quite safe but I do know there is one spot in N.

For the average person, who does the average type of investing and wants average returns, it is a safe approach to investing. 

To be safe I would plan on the worst case scenario.

Get the payment that is safe and back into rate and/or term to make seller happy.