If top is ajar and extra bag on the side - 3-cans.

I mean, we could all just chug money into our 401k's and let Fidelity or whoever control our retirement... most of us are willing to do the extra work of being a land lord or RE investor to boost our returns... by that same token, why wouldn't we be willing to be a bit more geographically mobile in our investments to further boost those same returns?

Just a quick point... the 50% NOI calculation includes vacancy.Numbers seem solid and I agree with your cap expenditures though based on what I have read you would probably want to create an escrow/savings account as those expenses will come and that would put you in great position to deal with them.Not sure what the whole side deal is with your brother but the numbers seem to add up.

If they caused a problem, they should fix it or pay if someone else has to do it.Sounds to me like you've bought a property in poor condition and the PM is nickel and diming you for a little extra every month.

If in-house, perhaps offer to pay extra to get it expedited (with the terms they're offering, paying an extra $100-200 for the appraisal is still reasonable).I don't think 45 days to close will kill your ability to find REO deals, but it may keep you from getting the "hot" deals that tend to get scooped up in one day.

For rentals, that's all I look for is 4 bedrooms, if it's a 3 bdr I make sure it has a basement so I can add an extra bedroom and bath.

One of them is has an extra kitchen in the daylight basement and a separate entrance, so I could rent out the basement and live in the top floor.

Although, I'd reiterate that a half point is nothing to sneeze at, especially when that means extra dough in your pockets each month.

If you want to cashflow well with section 8 or something like that, then sure, bad areas can work if you're willing to put up with extra hassel for a higher % return, but, for rehab to sell, i personally would pass.

In that case, having the extra insurance would be nice as I would see equity out of the situation.At the end of the day, I can pay an extra $15 a month and cover myself better...