If the purchase is made at well below market rates, that would still be unlikely but may not be impossible.

The company I work for filters through a lot of data to locate good markets for buying vacation rentals.

For places like south bay where average 3 bed 2 bath house is over $800K, I'm surprised to find over a hundred properties sold for under $100K in Zillow for San Jose, some even below $10K!

Filter in a certain order?

To prevent from any chance of discrimination accusations, and systematize our screening process we have minimum requirements such as:Minimum Requirements: •Monthly gross income at least 3.5 times the monthly rent  •NO convicted felonies •NO sex offenders •Minimum credit score of 600 (check yours for free at creditkarma.com) •NO previous evictionsWhen we get several applicants that meet the minimum requirements and cant decide because its too close we will use the equation below.

The rents are well below market, but probably consistent with the quality of the dwelling. 

The seller is motivated and price below market in a nice area. 

Here are some options below:1) Keep 5 geico personal landlord (fire-dwelling) policies, increase each to 500k. get State farm commercial umbrella for 1 million.

I copied the example he uses in his white paper below. 

I have a few friends that are currently doing this and they think its great, but they're not very analytical as far as tracking their numbers.I've completed my cash flow analysis below.