The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.For what its worth most deals I deem meeting minimal IRR standards is 13-15% but you have to dig a little deeper to uncover the real placements of cashflows and capitalization events... and then dig even deeper to verify the assumptions such as occupancy, rent increases per year, and what reversion cap rate was used.Again I don't look for IRR cause its manipulated a lot instead I look at total return on a 5 year basis.

I actually kind of figured the seller, who was motivated to begin with, would be lucky to get that from me given that he's in breach, and looking at the prospect of having to relist the property in the winter months with the legal obligation to disclose all the repairs I've uncovered.

In an ideal world everyone would be highly educated, honest, reliable, dependable and do what they tell you.The day you give your invest your money into syndicated real estate you need to hope and pray the general partner knows what he (or she) is doing and some general partners are great and some are real scumbags, do jot manage their properties well and they have the right to spend and steal your money in many ways that are illegal, but you will have a very difficult time uncovering, proving and then you will have to fork out attorney fees and court costs.

(I am certain that the appraisal will be higher than this asking price).On counter offer #2, the buyer has offered $102,000 with a contingency to have the pool uncovered for inspection.The pool is inground with a liner that is over 10 years old.

He uncovered a lot with that strategy.Small example here, but I checked out the Facebook account of the last tenant I picked, and I couldn't find anything negative on her profile, despite her being very active.

If anything is uncovered that was not previously known or disclosed, a renegotiation ensues for a credit or price reduction.

None of that even begins to start addressing plumbing issues, structural issues, covered up defects, defects created by the flipper and a thousand other things anybody in the construction business continually uncovers on a daily basis dealing with homeowners when that homeowner calls in a professional to do some renovations and exposes all the criminal activity that flippers do in the name of their profits.Now I hate to generalize, and their may be exceptions in other parts of the country, but I have 10 years of personal experience witnessing this over and over again here in Denver.

Much like a home inspection, they try to uncover defects, minimize potential risk & use the info to inform the buyer.  

@Joel Owens - thanks for weighing on this...my question was poorly worded, I meant more how do you determine where to invest based on economic factors...for example if two houses cost the same with same economics but one is in town Y and other in town X which both may be in different states Essentially, I have looked at a number of areas and have uncovered what I think are several decent areas to invest in should the right deal present itself, but trying to narrow down to one and focus on it...so wondering how others hone in on a place to investigate and then invest?

However it seems to me that with enough tenacity towards research, that information can be uncovered.