If your PI is less than 50% you have a good chance the other half won't exceed 50% IF you don't have large capital expenses early on.The only way down payment comes into play is to adjust PI.Separate your operating expenses then try to estimate your capital expenses for a more accurate estimate once you start looking further.

I really would like to leave my current job and focus a bit more on real estate and having a more flexible schedule.I'm debating between buying possibly one or two multi units (4unit or less) or buying one small apt building (maybe 9 or 10 units).

If you are an experienced buyer with loads of cash you can generally pick up a more experienced broker/agent.

There is a moral issue here: this would not be YOUR problem, since it’s the seller’s name on the mortgage.

I take the ARV and multiply it by .94(this covers closing costs, commissions, and a little bit extra) then subtract your rehab costs and holding costs, and profit, and you have a more competitive offer.

This affords a more predictable environment for all who participate in the contract.

I have many rentals and if I send you my schedule E, you'll see it shows that rentals cost more than just PITI to own, sad, but true.2) If you just "ride it out" for 3 years, and then add back your maintenance and replacement later, and don't think of it as part of your rental, you don't really have the $1,000 cash flow "ROI" that you speak of, but you'll come out ok, most likely.3) Assuming you're an aging "boomer" as I am, or as you stated, at least headed for retirement, you probably made a good move, as if it's a desirable retirement destination for boomers with money, the competition for houses in that area would likely grow, so you may have been wise to lock something in now.It's hot over there, don't forget to get the air conditioning serviced regularly - hopefully you've got someplace cool to go in August.Joffrey Long

You're better off doing more in-depth research to find comparable sales in the neighborhood if you want to get a more accurate depiction of what you're looking at.

If you have the Tax and insurance #'s you should be able to come up with a more accurate number based on the actual expenses instead of the 50% guideline.

I can see the benefits of both situations, and appreciate your insight, but was hoping for a more thorough answer.