It's not a magic formula that works in every situation...in fact, sometimes your expenses are MORE than 50%.Take a couple minutes to list out your expected expenses (and their amounts):- Vacancy (talk to other investors in the immediate area and see what kind of vacancy rates they are seeing)- Rent Loss (how much do you plan to lose due to concessions and non-paying tenants?)

Assuming you are in some kind of STR market, there HAS to be property managers or VR services in the area. 

What kind of overhead expenses should I consider when trying to figure out numbers?

Is a title search on the properties of interest at auction the best option to see what kinds of "unknown" liens exist against a property?

What kind of law do you practice?

Yeah I am slightly confused why a guy that has reportedly done so much doesn't have a lender he uses or already have an idea of the kind of  product he can get against land.

Originally posted by Account Closed You should have come to the last East Bay Sunday meetup, it was all about OOS, but the presenter shared that cool litmus test above (where you invest passes with flying colors btw) that kind of guts the standard "turnkey provider" model.Another market not far off, Stockton, same test as above - steady income (rent increases will likely at least track with inflation, if you zoom out to the 10 yr horizon), gradually increasing population (a driver of asset/home appreciation, 10 yr horizon), 2-4 unit properties still affordable.Do it for Oakland and obviously you will see incomes through the roof, population gradually increasing, but sticking point will be the prices present a barrier to entry that not everyone will be able to handle. 

So what kind of approach could I go at this with some type of right of first refusal agreement?

What kind of property should I be concentrating on?

I love it how everyone is so willing and happy to share their stories and advices on here...this is my kind of world!