Now these properties are in the condition that you would expect a $9,000 house to be in.

And if you have had it for some time, are you satisfied with its condition and durability?

Massive value add opportunity based on the condition of the property and the rental rates in the market.

Massive value add opportunity based on the condition of the property and the rental rates in the market.

Your should talk to your lender for more info.I assume the property is already in good condition since you're budgeting $114/mo (3% of Monthly Gross Rent).

It will give you insight of the overall condition of the property and repairs that should be addressed ASAP.

@Raymond SantosNumbers seem a bit too conservativeI don't know the conditions of the property, but if I was running the numbers, I would use the following:Monthly:Revenue = $2,550Expenses:Mortgage: $1,347 (300k at 3.5%)Insurance: 150 (1,800 a year)Maintenance: 200 (should cover lawnmowing, pest control, hvac, and a few other things)CapEx: 200 (this one is a wildcard, but 200 is very conservative from my experience)PM: 250Vacancy: 107 (half a month a year)Total Expenses: $2,254You net $250 a month.

I can’t say that increased foreclosures will correspond with equally as favorable lending conditions, so right now seems pretty good if you have the capital lined up.

Tenants seem to like living there and also keep the house in good condition.

The option agreement: stating the length of the agreement, the upfront payment due, and the purchase price – among other things. and -- The lease (or a management agreement): which states how much you'll pay each month, the conditions you need to abide by, and so on.