This is a long shot, but we'll probably ask about 1/2 of the listing.

Think of it from the seller's point of view.It's a short sale, he's getting $0 at closing, his credit is shot regardless of whether the bank gets 40% of what he owes, or 99%.

Its a long shot.

Kalyn everyone wants cosmetic properties.You will find regular home buyers do not have to resell and will accept way less of an equity position and pay a higher price to get a home cheap with a low monthly payment.Their goals are totally different than a rehabber.This is why a bunch of success is taking on properties where a home buyer is not a competitor but it drives down the price with the property not being loan ready.If your offer of cash is just slightly lower than a finance home buyer the asset manager might still choose you.If there is a wide difference the asset manager might take a shot with the finance home buyer to net more.It depends on a bunch of factors which is being at the right place at the right time.You also have to understand local,regional,and national banks make decisions in different ways.Kayln are you offering to let the listing broker keep all the commission are are you getting greedy and asking for the co-op??

Should I have paid, probably not but it one less thing to worry about.Exterior damage was done months back, rocks shot from a friends lawn mower doing me a favor.

No gun shots at night, No body walking around in baggy saggy pants, No cars in the yards, no outside fights, ETC.I was highly entertained while doing that rehab.

Thirdly, a 20% of gross rents factor for maintenance and vacancy is only accurate if 1) the property is FULLY stablized (new roof, new furnace, new windows, and so on)--and most of the TKRs I've seen do NOT meet this standard by a long shot, 2) if the property is VERY aggressively managed--heavy screening, prompt eviction, quick re-rent--a practice not common amongst most property managers, and 3) aggressive maintenance is done to maintain the capital repair items (changing furnace filters bi-monthly, cleaning gutters in the fall to avoid failure, maintaining metal roofs, cutting back trees to avoid roof damage, etc--again, uncommon amongst property managers).

How may I tweak the financing terms to make it more attractive to the seller, but still maintain a decent cash flow (I understand that putting more down would help; outside shot at this being an option at this time.)?

He doesn't leave me with any plan based on our goals, nor does he give me anything extra than what I had already learned from class.Parting Shot: I think that for the advanced training, especially when you pay for a mentor, they should finish the 3 day training with individually sit with you and build your  business plan based on your goals, provide you with real information tailored to your area, so it will better prepare you for the long road to come and for the upcoming mentor meeting.

The odds of buying any particular REO property are low, so you have to take a lot of shots to hit something.