You state that you have 20% - 25% equity position for safety, but you don't based on the information you gave. 

Not 100% but we were doing that pre '08', and it was based off our model not drawn from anyone else. 

@Ming Huang Based on the numbers you've shared, I would advise against the deal, unless you can negotiate the purchase price down and/or rent it for at least $1,150.

Hello everyone. I am learning a lot about real estate and want to purchase a rental property in my area. My goal is to create financial security for retirement. I am not opposed to making this my primary method of inc...

I don't need a property management based software.  

Let's help you duplicate that success in the Houston Area.I am a Houston, Texas based Investor Broker/Agent who has worked with over 400 BiggerPockets Members and Investors. 

What's up fam I go by JAM. New to real estate investing and would love to learn where to go for the best resources in how to get started. Been doing wholesaling off and on with little success but hopefully more time t...

I also see your point about avoiding bargain basement properties, especially insofar as tax shielding is easier with an asset of a reasonable size.Your point about barriers to entry is also interesting, since I suppose those barriers can be geography (natural boundaries of mountains/water), but you're probably referring to that which impedes future construction?

I never choose anything based on price.

Note if you go over 4 units, your valuation will be based on NOI and comp rate.