That is why you need to monitor your marketing results, track your cost per deal and run a lean, mean real estate machine.

By the end of the day, they usually wash out and therfore whatever rule the investor chooses to use to calculate OE, they can use the same one always without need to adjust for higher property taxes, etc.Mike is able to find properties at huge discounts and able to get good enough rents so that his rent to purchase ratio is around 2%.

Assuming that maintenance and repairs will cost 20% of gross rents (I believe this number to be way north of what it will actually cost) we arrive at $1,015 for maintenance and repairs.I will also have an extra $2,000 in a revolving CD ladder as a slush fund to fix whatever Murphy's Law throws at me.So:Gross rents: $5,076Taxes: $701Insurance: $766Debt service: $2520Maintenance and repairs: $1,015Cash Flow: $74I realize this will be basically a wash as far as cash flow for the first year, but I think I have all my bases covered as far as projecting what expenses will be.

I wish he would stop advertising his so called flip machine as free when it isn't.

You get a markup as long as everyone keeps playing, and the final buyer hopefully ends up able to convert the option and purchase.Of course, the more moving parts in the machine, the more points of failure.

fedex and fax machines are your new best freindno they do not have to be notarized, atleast where I do business

Leaky faucets are fixed, toilets no longer run continually, cars are not washed every day, etc.3.

I just had a freakish weekend showing a house--the first applicant was a very attractive woman who worked for a cosmetic Surgery clinic -- she had obviously taken advantage of the employee discount--she had a very nice look and way about her- & her children were nice too--she was evasive about her credit -she said it wasn't "too good"----upon getting the screening back,the records showed she had undisclosed bankruptcy, recent eviction--she said that was her sister's eviction-- it was" just in her name", the LL name she gave me was not the property owner listed on the county records--"she said that was because of a divorce and he was hiding from his wife", the child support financial records to support her income I asked her to provide "couldn't be faxed because something was wrong with the fax machine at the clinic", and she had 30 recent collections as well as 4 new court judgements-- these were" just loans and things, so how does that affect me renting your house?"

Or just a regular fax machine?

What this place really needs is to power wash the brick".