What do you think is the best way to find a more accurate cost?

Not maintaining accurate records of payments or hiring a servicing agent Make sure that you keep track of every payment the buyer makes to you.

Tom,Thanks for the response.While your point is 100% accurate, I believe I might have a somewhat different angle to utilize by marketing to people in from outside the city, based on the perceived purchasing value of their dollar.In the last week that I have been experimenting with this concept I have interested four families to the point of calling on real estate agents there with one driving up yesterday and visiting several properties.

And you could probably be successful with or without any of these factors, but I would say that these would increase the likelihood of your success (not guarantee it).Typically if you claim to have a set of reasons as to why people are successful you provide an amount of data to prove it is accurate.

For example : $900 monthly rent -$72 ( 8% mgnt fee ) -$125( monthly taxes ) -$45 ( vacancy allowance ) -$18 ( repair allowance ) $450 ( mortgage note ) ------------ $190 True cash flow after all expenses.Now some people would say that the cash flow would be $450 per month.Neither of these numbers is even close to being accurate.

Big reason; They know how the system works, what paperwork is needed and most important-They know how to submit a accurate HUD 1 statement.

That should give you a very accurate picture of the rental rate for similar houses.

Eppraisel evaluates the property at 88K as being medium price, 75K on the low end (although I'm not sure how accurate that is either).

If you plan on wholesaling the property to another investor, you had better get a smoking deal to leave enough room for your profit and enough upside and wiggle room for your end investor buyer.Most experienced investors will not pay more than a 10 cap (based on real and accurate numbers of current performance, not proforma) and thus, you need to buy at a better cap for your profit margin.As Jon asked, what are the gross rents and operating expenses to arrive at your NOI?

Hey Charles, how accurate are the tax appraisals?