Hi all,What formula do you use to screen a SFH to see if it is worth buying for rent purposes?

For the purpose you note @Paul Jamgotch, lending, these fees are obscene.

Looking at comparable properties in the area this house would appraise for around $70,000 now.

To do this compare rent prices of 3/1s to 2/1s (order of preference if available: both condos in same complex, condos in same area, SFRs).

The appreciation value (or forced appreciation value), which means the property will be "comparable" to the 4 bedrooms in the neighborhood as oppose to the last comp of two bedrooms.

Although it is possible that the (former) owner didn't know about the foreclosure, the odds are pretty steep that he is lying to you.While most of us investors might continue to hope and wish that "notice of foreclosure" means the date of the lis pendens or "notice of default", the feds and state case law have gone on to define it, for the purposes of this law, as:"The date of a “notice of foreclosure” is defined as the date on which complete title to a property is transferred to a successor entity or a person as a result of a court order or pursuant to provisions in a mortgage, deed of trust, or security deed."

I can find FL notes for 50-70% discounts compared to ARV.

The JV will be in a new special purpose entity anyway.

These transactions are sometimes referred to as "parking arrangements" and may also be structured in ways which are outside the safe harbor.Proper Purpose - Both the relinquished property and replacement property must be held for productive use in a trade or business or for investment.

They will serve a purpose for you one day again in the future, perhaps, but the experience you will be getting by self-managing should give you a lot of insight on how to hire and manage a PM to your satisfaction.