., cap rate is more of a metric to compare and value commercial properties.

Given that a comparable down the road just sold for $229,000 and spring is a hot time of year for real estate, her realtor probably gave her a fair estimate.

Some property's need to be listed very quickly due to foreclosures and may be listed prior to obtaining photos.

Fernando,Will this be your 1st investment property or do you have experience single-family prior to this?

Get some more data in your system so you can actually see if its working(compare round to round).

When comparing to deals in my areas, I would definitely say pass.

I am not convinced that one needs to own his/her own home prior to investing in real estate.

I would also check local rents around to see if it's comparable with the annual rent they claim to be getting. 

If you qualify for it - this would be much better choice compared to SD IRA. 

Now, if I take a reasonable valuation of about $1.1m (the slightly smaller, less nicely renovated house literally two houses over sold for about $1m a year or two ago) and throw that into a mortgage calculator with 20% down and comparable taxes/insurance, I get about $4,500/mth.