So if one were to use the 40% rule (minus 10% mgmt fee), we arrive at the following:3665 in rents * 12 months = 43980 (Gross Profit)43980 * .40 (40% rule = 17592 (Expenses)1090 * 12 = 13080 (Debt Service)(Debt Service) + (Expenses): 13080 + 17592 = 30672 (Operating Costs)$43,980 - $30,672 = $13,308 or $1109 per month (Net Profit) 13308 (Net Profit) / 51700 (Actual cash due at closing) = ~ 24% Cash on Cash ReturnNow, lets say I spend an additional $15,000 in preventative maintenance and improvements over the first year.

I know the 50% rule is the norm, but considering the maintenance covered by the condo fees (as Andrew mentioned), I couldn't see expenses being 50% in addition to the condo fees.

Resource land makes it so that an additional homesite approval is not necessarily an outright use.

I plan on renting out the house for additional income.

If surveys are used in your area, that could be a $300-$1000 + expense to verify that the property lines are correct & that the buildings are actually on the property, and title phrase is *really* concerning, because you're effectively required to verify title - which could be an additional expense - with no guarantee the deal will close.

It may be the same or different in your area, so it would be hard to say anything with confidence (also because the size differences are large), but...If these are the best comps you can find, I would suggest taking the property(s) that are almost certainly lower value than yours, and going on the assumption that yours will comp at least as high as those, and then not assume anything additional from this data.In this case, you can assume that your property will sell for more than the 780 sf 2/1 that is both smaller and has fewer beds/baths.

Additionally, if the Seller has any equity in the property, you will need to be prepared to pay the difference between the mortgage any market value if any.Because mortgage rates are so low, it may be a better idea to just purchase the home under a new mortgage and have them pay off their USDA loan.

Additionally, you can go speak to a lawyer who might oversee your foreclosure proceeding and they will ensure the required disclosures have been met and the paperwork is in order.It is possible to affect your capacity to foreclose by accepting the funds if there is no language and the borrower can show that a patter was established and then you sort of changed your mind and wanted to foreclose.

And the snowball would just get bigger.The banks don't look at it as losing an additional 10k by keeping the house vacant an extra year.

The back taxes is an additional expense not normally accounted for in the 50% rule, so that is why Andrew added it back