Finally, if you could cite your references it would be helpful for those of us commenting.

If your referring to a bank owned REO you should do all your homework first before making an offer so when you make it you dont have to back out.

I had a tenant tell me they only wanted to pay 600 a month when rent is 850.They said they will move.I said that is fine with me.250 times 12 is 3,000 a year in lost market rent.So if I took a tenant at 600 times 12 is 7,200.Instead I have a tenant at 850 times 12 is 10,200.So I can have it vacant for almost 4 months and be at the same point.Plus the past tenant has a judgment and I will have a company garnishing their wages for me.Another item to consider is the cost to get it re-rented.If the tenant has lived there a long time then fix up costs will be high compared to a newer tenant you have to get out unless they had animals,smoked,etc.Once you file eviction on the tenants most likely they will not pay anything as they are saving to move and go somewhere else.The down side of a vacant unit is vandalism and crime,more maintenance,and worrying about busted pipes etc.Hope it helps.

I understand what Jon is saying this is referring to hiding subject to's.

1) The Millionaire Real Estate Investor by Gary Keller2) Landlording: A Handymanual for Scrupulous Landlords and Landladies Who Do It Themselves, Landlording doesn't have any strategies, but very useful and a great reference for a landlord.3) What Every Real Estate Investor Needs to Know About Cash Flow...

As the values of these items changes, the % would change also.

Last 6 months at their apartment checks out and personal references check out.

Once you've purchased the home and addressed all the major items, and you're confident of the maintenance record of the home you can come up with an estimate for your repairs.

Numbers:Beds: 3Baths: 2Sqft: 1,424 (Will be 1600+ with finished sunroom)Type: Single FamilyYear built: 1955Cathedral ceilings, big 2 car garage in great shape to the rear.Asking: 79,900 (priced dropped 10k as of 10/20)Pictures available here http://www.zillow.com/homedetails/6105-Lockamy-Ln-Norfolk-VA-23502/79225876_zpid/#{scid=hdp-site-map-bubble-address}Repairs: 50k-55kSome big ticket items: Will need 50% new sheetrock plus insulation.

You may be able to count on fairly consistent numbers similar to what was given, but you have to be prepared to have 0 or negative cash flow every now and again when a big ticket item happens like the tenant who not only needs to be evicted but destroys the apartment before he goes.