GREAT Cash flow property that I dont' want to own!

[Kenneth LaVoie]

The cash flow purists are going to hunt me down and beat me for this one, but here it goes.

2 years ago I bought a property (foreclosure, on MLS) for 26K, put a ton of money into it but got energy rebates. Ended up costing 31k total and cash flowed 9k last year, which is about right. My projections showed 8,500. The problem is, I don't really want to own in that neighborhood. I want to own more blue collar properties that are easier to manage, easier to rent, etc. The question becomes: What do I need to sell this property for to make it worth giving up a nearly 30% COC return? I know it's probably a simple formula, but if someone can set me in the right direction, I'd greatl appreciate it. Even if its just "better questions to ask myself."

(by the way, it's a 2 unit, and even breaking down the numbers bit by bit, it still ends up at 49% expense as % of gross income, so it holds up to the 50% rule)

[Will Barnard]

SImple formula: Take the gross monthly income, divide by .02 and that is what investors would likely be willing to pay for it. (the 2% rule)