Pam,Your mother's problem is very normal and predictable.

Furthermore, even if they do include all the items, it is impossible to predict which expenses a given property will have in a given year.For example, how many evictions will your rental have this year?

While predicting value down the road is hard a safe guess 4 years value will be $45,000.Management is in house, taxes / insurance $165 a month.

Only when the market risk is very high and the direction is least predictable, we fully hedge our positions under the assumption that we still have portfolio alpha; otherwise we will be out and sit on cash.

I seen zillow has a new 'zestimate' feature that predicts what an REO is 'Probably going to sell for' before it even gets listed!

Actually the consensus coming from the financial markets is that mortgage rates can go as high as 6% (with most analyst predicting 5.5% by year's end).http://www.forbes.com/sites/billconerly/2013/05/29/interest-rate-forecast-2013-2014/http://www.businessweek.com/articles/2013-02-01/how-high-will-mortgage-rates-gohttp://www.forecast-chart.com/year-mortgage-30.htmlhttp://www.marketwatch.com/story/mortgage-rates-wont-derail-2014-housing-market-2013-12-27etc....Hope this helps :)

Rehabbers usually like to find a property that has predictable restoration expense and when finished the comps will provide a profit for a quick flip.

I predict that one day they are either going to widen the road or a business is going to come through and try to buy me out.

I couldn't find anything in the area on Craigslist other than the apartments mentioned below & by padmapper.I've driven the neighborhood and there is a complete lack of "For Rent" signs out.So the deal is make/break on the monthly rent:- $800/month the deal is too thin, with predicted cash flow at $42/month, Cap rate at 11.5% and CoC of 3.1%- $950/month the deal is pretty solid with cash flow at $168/month, Cap rate 14.1%, and CoC of 12.4%Home details:-Home is owned by Fannie Mae.

Although, many on this site report positive outcomes.I could use a word of wisdom on how one proceeds with this venture without making predictable mistakes.I would greatly appreciate feedback on the proposed deal:Sale Price $980,00Price Per Unit $35,00Price Per Foot $41.26CAP Rate 7.1%GRM 4.86xBuilding Size 23,750 SFLot Size 43,124 s.f.Year Built 1969City Desoto TXGross Scheduled Income $201,424Other Income 703Total Scheduled Income 202,127Vacancy Cost (28,610)Gross Income 173,517Operating Expenses (103,682)Net Operating Income $69,836