Using the expenses (all expenses, including vacancy and capital items) are 50% of rent rule of thumb, your example will need rent of $2762 (I get $1381 for the payment with those terms) to be break even.

A judge may rule that the tenant didn't owe rent for the time they were living in an uninhabitable property.

I've attended some IRS foreclosed auctions...and IRS seized auctions...but I missed the latest property tax auction here...I looked at the list of properties they had...nothing to shake a stick at unfortunately.I would treat a property tax foreclosure like any other foreclosure...but check to see if there is any sort of redemption period...there might not be for a property tax foreclosure but that could vary by state law.There should be an inspection period for the property...so if you are serious about one I would get your inspector out there in advance.Also, get familiar with the auction rules...and attend an auction before you actually bid on anything.

Pretty sure the rules also apply to an investor short sale.

Non-payment is the easiest eviction case - a Judge must rule in favor of the landlord always UNLESS the tenant can prove repairs were not made.

I imagine much bigger name investors can get around some of this prequalifying but until you establish yourself you have to play by the rules and "polish your apple".

I have heard some folks here talking about the 50% rule.

Paul, Others will give a more detailed response but here are the way I see the numbers:Purchase price: 250KRepairs: 30KClosing costs: 7500Total: 287,500Monthly payment: $1912.75 @ 7% for 30 yrsMonthly Income: $4800 50% rule: $2400 - 1912.75 = 487.25Cash flow = 487/3 units = $162 per unitThat is good.The other questions:1.

You can also check into your HOA bylaws/rules and see what (if anything) it says in those.

This is too funny...I just found myself crunching the numbers on a unit in my neighborhood that is almost identical to the one he mentioned.