Agree that the deal looks thin and condo fees can go up over time further eroding cashflow or creating a loss.As for people's sentiments on condo investing, I think successful condo investors only really stand a chance in metro areas as typical higher rent becomes high enough to support HOA fees, mortgage, and leave enough cashflow to be worthwhile to hold as a rental.

I know I'll risk alienating myself if I play up how scary the unit looks since the sentimental emotions might kick in and shut him down...I could also explain that its hard for me to come up to 89 if repairs cost 20k (him likely more with retail priced contractors) putting me in at 110k for a property with market value of 105k. but he also thinks the cast iron sink and retro metal kitchen cabinets can be left as-is so the renovation arguments will not have a powerful effect on him:)I'll post again the results of the negotiations later in the week hopefully...

I'll echo the sentiments of everyone else and say wait two weeks.

I agree with your sentiment but that's exactly what a subject to seller does.

Yes, I have seen a strong sentiment recently of people recommending dividend paying stocks in this market.

I understand that sentiment.

I appreciate all your responses and sentiments.

But history has shown that not all rules are best for society in general, and since conditions change, sometimes rules should change.I absolutely agree with that sentiment.

Payroll,taxes,benefits,and paying salary during slow periods is all wasted resources.I definitely agree with this sentiment, but keep in mind that if you're looking to hire a project manager / right-hand-man type person, it's unlikely the IRS would allow you to pay him like a contractor, as he would almost certainly be treated as an employee.But, as John and Rob said, employees are something you should hire only when necessary and not without serious consideration -- lots of overhead, management effort and costs are involved.As an example, I used to manage a 150 person organization for a Fortune 50 company, and the time and overhead spent on management wasn't that much more than what I spend now on a single employee in a small, family-owned business.

It is exactly the OO buys that are squeezing prices upward and frustrating red-blooded capitalist real estate investors such as myself, intermingled with legitimate investor bid competition.Ultimately, and notwithstanding sentimental sway or insider bias, my fear (yet mercenarial pleasure as an opportunistic REI buyer) is that these FHA-supported purchases will again fail their debt service obligations in a couple years, swirling us back into another "correction" when this present swath of FHA loans collectively turn sour.You heard it here first (as far as I know) - ANOTHER market downturn, caused by (mostly) FHA mortgage failures, within the next couple years.I plan to "dollar-cost-average" my purchases, tempering volume in these present days of over-represented values and betting on another round of bust in the near future.Peace.