But if there is nt something like excessive repairs you found out about after getting it under contract, the seller may not want to go back to the table.

Ok, I'm not actually going to buy but, I've been looking at this site excessively, and decide to give my valuation skills a go.

The client specifically told me he wants in excess of 20k down to make it worthwhile to hold a note.

How about management, advertising, entity maintenance, insurance, evictions, setouts, legal fees, damage done by tenants (in excess of the security deposit), lawsuits, utilities (at least during vacancies), capital expenses (not technically an operating expense), etc, etc, etc?

SORRY....THE BANKS HAVE MADE ME BITTER FOR THE MOMENT...Then to TOP IT OFF....YOU HAVE ACCESS TO FOREX PRINCIPALS IN THE INST BANKING INDUSTRY THAT HAVE THE CAPABILITY TO DO THE CURRENCY CONTRACTS IN EXCESS OF 5 B AND UP...YET THERE'S NO REAL USD PROVIDERS TO BE FOUND TO MAKE YOU BE BETTER THAN A LOTTERY WINNER!

Unless you qualify as a "real estate professional", you wouldn't be able to deduct your excess passive losses (losses that exceed your passive income) against your other income.I know you're hating to pay all those taxes.

Keep in mind, though, that, in addition to the excess formaldehyde problems with some of these trailers, many were also vandalized and had components missing from them.

Buy where you get cash flow in excess of $100 per door.

You will need some cash to cover miscellaneous costs and the excess over the 70%.

You would need an additional $10K or so of your own cash to cover the excess of the rehab over the loan amount ($3K), the points (about $4.5K), and your holding costs (taxes, insurance, utilities, etc.