Same formula....just the major expense most investors have, you don't.If you have money left over after expenses then you are making a profit.Of course with real estate compared to other investments your exit costs are pretty high. 

Comparable houses in the neighborhood (turn key) are going for anywhere from 270-300k. 

I'm excited to hear about the numbers on this one compared to renting by room to normal tenants. 

I think I can take some profits as buyers are overbidding (comparable home just sold for 8% over list - $40k over on a $500k home) and re-invest in a cheaper market with better cap rates. 

When the value is less than $60,000 market value; the lender seems a high cost of maintenance compared to revenue generated with that.Good luck

I understand that you’ll need to stash away money for capex and maintenance cost, but putting away 10% from a $3,000 rental versus 10% for an $800 rental in the Midwest does not seem comparable. 

When comparing apples to apples across the board with different lenders you will need to know what the interest rates are, what % down you will be using, what the total lender fees are, any points being charged & what loan product specifically you are looking at. 

I say luckily, as it is my understanding those shouldn’t be too costly to rehab compared to other property types.

Every type of non-QM program will have a higher rate compared to Conventional. 

And goes without saying, but do all the inspections and such.While we've technically viewed all our properties before closing, I'm not sure I've added much value by seeing it compared to reading all the Airbnb reviews if it's an existing rental and having qualified inspectors review the property.