Senator
Thinks s/he gets paid by the post
Well I'm not sure where you can buy a house for 70k - not anywhere around me. Much less a house sub 150k that you wouldn't have to rehab with significant upfront cost. Also, seems crazy someone would rent a house for 18% of the purchase price per year. I can't get the math to work.
You cannot get the math to work as you do not understand real estate investing. Look for a 4-plex for $280K, not a $70K house.
Real Estate is a high-risk, high reward game. Some were paid for in cash, so maybe I have more invested than that, but 20% of my purchase price, it is ~$360K.
I have bought homes at Sheriff's sales, short sales, foreclosed on mortgages I purchased, cancelled contracts for deeds I purchased, put mechanics liens on properties and redeemed, etc. My investor friends have had deeds signed over to them for $0, the latest one was a $369K sale on a $200K mortgage redemption. (they put money into it, but had $170K to work with.
All my properties are within 15 miles of my home, and 20 renters are within 4 miles.
My most recent purchase was for $38K on 12/30/2015, with renters in place, paying $830 a month. Zillow says it is worth $135,662. The renters have moved out and I am now prepping it for sale. Hopefully it may be sold for $150K+.
I flipped a property in 2013 I bought for $128K I sold for $200K a month later. Several 4-plexes I purchased since 2008 for a total cost of $1.3M are likely worth $2.5M. They are in a class A suburb and are built in 1985. I cleaned up the neighborhood, a homeowner association complex, (i.e. gentrification) and increased values and rents by a lot.
If all you are looking at is the MLS, you are right. It is impossible. Forget any rent to buy calculators. They are for amateurs.