If you go this route, focus on areas with stable economies and strong rental demand.

Networking is always key in this business, especially in smaller markets. 

What factors, calculations, and analysis should I do to determine this?

Good to meet everyone.

This builds equity, generates income, and gives you hands-on experience with rentals.

For example, are you in an area where land is very valuable leaving you with less to depreciate?

Step 3: Run the Numbers (10 mins)Now I plug everything into a simple cash flow calculator (BiggerPockets or my spreadsheet).

The good things about this contract are: a) escrow/title are very familiar with it, and b) it contains decades of "lessons learned" in the language.You can also search for "flat fee" seller agents, who are very familiar with this contract (typically more so than attorneys), or look for a transaction coordinator that works with FSBO.

Most fail to recognize the lack of a direct contractual relationships can be devestating in the event of a dispute or construcion defect caused by this sub contractor if the appropriate contract and insurance is not in place.

Business Case StudyThis is my 22 page Case study I wrote over the weekend.