One is based purely on the appraisal value and your finances.

That being said, you can skip all the above steps, apply the 50% rule (which is fairly accurate) and find that this deal is going to fall short of just about every return metric.The only reason to buy this building would be because of future appreciation, which is purely speculative and probably not a wise idea.Good luck!

We also buy pure rentals.

Three full 8 hour days, lost from my regular job and everything else, of pure sales-pitch infomercial up-sell B___ S___ with nothing useful anyone could take and go start making deals.  

There have also been some purely informational speakers that have been excellent and well worth the cost of membership.  

So you do have to step back a bit from being purely an investor and have the mindset that I am also going to live in this property.

Find houses in that 140k to 160k range that you can be all in at around 70 to 75% of that - i.e. purchase plus rehab would be 70% ot 75% of the appraisal value.Thats typically about the price point that most rentals have a nice balance of cash flow and potential appreciation.But it is very market specific (I don't think you could find a parking space in california for 150k) so you definitely need to gauge your market.But ultimately, I'd want to take that cash and put it in 4 or 5 houses that will cash flow 300 to 400 a month and that I would gain roughly 30 to 40k in equity on each deal as well.From a purely paper standpoint, you would be making taking the 280k you have in equity now and picking up 120k to 200k in equity with the purchases plus paying down the houses another 180k from the sale proceeds.

I guess my interest comes from just purely browsing the internet and searching for alternative ways to live than a 9-5 type of job.

The Preston Ely, Kenny Rushing, Than Merril, Rich Dad Poor Dad, Sean Terry(has good podcast though), Joe Crump and about a million others that I am missing are pure salesmen.

You can then convert it to a pure rental property if you wish, no need to refinance or anything.