After you reconstruct the owners' representations about the properties for sale (i.e., after you verify the rents and the major operating expenses like taxes and insurance, and apply your own experience about the typical costs to maintain and the amount you need to allow for potential vacancy), you decided that these properties are being offered at something closer to a 5% cap rate.Before you spend any more time or effort considering these properties, you know that, at their asking prices, they are not worthy competitors for your investment dollar.

@Drew Eldridge I am a general surgeon who has always loved real estate but haven’t had time or money until recently to invest.

Plus its introduced me to a lot of well off people. have a couple surgeons who follow my real estate adventures now and want to be cash investors. this car was just as much about networking as it was driving for fun. ironically its not landed me any girlfriends LOL@Jay Hinrichs you'd love the aftermarket exhaust on this thing.

Sure you see demo and reconstruction and can learn a thing or two of what’s behind the walls.

Those rules include having to use a disclaimer that is a bit like the surgeon generals warning on cigarettes - and if you follow the rules and include the warning, most have found that they get almost zero response.

If so then the reconstruction should be at or above the original basis, not knowing what your paying for the new property.

All my doctor clients make tons of money whether surgeons, dentists, etc. 

I have not seen a specific judgement on notary, but the statute lists 11 types of real property trades or businesses: real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage.

There is an hours requirement but also it states that you MUST spend more time on REI than any other activities(s) A read a tax case not too long ago where a surgeon tried to qualify because he self managed his whole portfolio, yadda yadda...Ultimately the IRS said you're in the Operating room for 10 hours a day 6 days a week.

If they are professionals, they will tell you the fees are non-negotiable, just like when you go to a professional plastic surgeon vs. a back-alley surgeon.#3 is an absolute must.