Mother of Bad Deals

[Dwayne Buckner]

I need a little help for the forum. Have a relative in Shasta California who has little or no experience in REI and wants to hit it big now that the market has fallen off. I'm seeing the numbers he's looking at and am walking on eggshells trying to explain to him why it's a bad (really terrible deal), but he's not listening to anyone who is friend or relative. In a last ditch effort, I wanted to post his general numbers here and have people who are not involved evaluate them so he knows that we really are for and not against him. He's not usually this unreasonable, but I think the visions of big dollar signs have taken him over. To make matters worse, he will be turning 60 this year and won't have the time to a make up for such a bad mistake. He thinks the market will come back in a way that will cover for short term loses. Even when the markets comes back, there is a lot of vacant land avaliable in the area for people to build on.

House Price: 225,000
ARV: 240,000
Rent: 1,000

Furthermore, this house is in a rural area with no schools, hospitals etc--just a golf course. He doesn't believe the 50 percent rule, yet I expect at least high turnover if not long vacancies. I plan to print this out for him so give it all you got. :shoot: I think he just might listen to people outside his circle.
Thanks
Dwayne