Too often I see OOS investors looking at the Toledo market, thinking it will behave like other markets "once it catches up."

Yeah, it's a catch 22.     

El Paso real estate has skyrocketed and rents are barely catching up.

Also, it is my understanding that in a multifamily, it is best to assume a 50% operating  expense budget, so 35% seems very low to me....there are no calculations for vacancies or capital improvements, but there is property management in there.The possibility for improvements is to have rents increased to catch up with current market by about $500 per month total (that's after cleaning up the property, catching up to market rents, and putting in rules to keep the grounds clean and safe). 

So they will use the proceeds of the house to payoff their delinquent taxes but you certainly could write in the purchase agreement that the buyer will be responsible for catching up taxes.

So the big question is, do we wait until the home prices fall enough to catch up with the rising interest raises and level off? 

Nice catch.

Down side is total out of pocket for two years is 120k down 60k pool 25k furnishings to see 18,774 by year 2 but potential for this property to be 1mil in 5yrs is high.Currently 3/2 1460sqft no pool single family home total monthly expenses with STR $4,716 with out management fees.First year strategy is to STR it as is for 7 months to catch the in season rates and break even.Total Revenue: $55,600Mgmt Fee (25%) = $13,900Total 7 month expense: $33,012Net Profit: $8688Second year strategy is remove for 4 months at a lose of 9k and add pool for 60k.

During renovation, we were catching 5-6 mice a week.

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