Posted by Rich-CA on July 15, 2008 at 18:23:13:
In Reply to: 0 down loan with a fica around 615 posted by al on July 14, 2008 at 22:16:11:
The selling price is just $17k below the comps (and you have checked current recent sales for comps and not just doing a seat of the pants guess to try and make it work, right?). The small a difference can evaporate in a single one day market adjustment. You need a 30% spread or larger (if the market is still declining) before this makes sense.
The rule of thumb I use on rents for a first cut is: monthly rent time 100 is the max selling price. That means $1500 rent * 100 = $150,000 is the max you can pay with any hope of breaking even (assuming everything is in good condition and no work is needed).