I have worked some comps and it appears it could rent for $1200-1300 comfortably, but my main concern is that it has a $267 HOA attached to it that would eat directly from my profit.

The SAFE Act basically states that any financing method or system devised that may provide any rent credit toward the purchase of a residence or that facilitates the sale of any covered property will be covered under the law.

If it was me, I would set up a seperate free email account, like mail.com, email him via the craigslist link, with my phone and first name and ask him to call me about the oppourtunityHe is probably just as concerned about craigslist spammers as you are, and doesn't put his name and phone in the ad

I probably could have taken some of the other paths you suggested, but I considered my current contacts and their investing goals, what the hard money lenders I've talked to look for in a property, and the value of my time securing an alternative method, and decided to pass.

Perhaps your method of metrics makes sense to you but frankly it seems to defy conventional wisdom.

Decide what the place is worth to you and offer it.As far as the tenants are concerned, if the place is so horrible why don't they leave?

So far all my properties have been financed and I never realized so many other option existed, although they seem a bit scary to me.I think my biggest concern, and I have seen its a common one, is whether or not to form a LLC. and other asset protection.

He also provided me with valuable information concerning different exit strategies.

Double digit cash on cash return is an excellent to way to start investing.Last comment is using 2% rule, a purchase price of $35,000 would give you even better results, having said that, it's not very easy to acquire.As far as rental income is concerned, I am not aware of local rentals.

One concern I have is that it has a hot water baseboard heating system compared to forced air.