Sellers can't have the cake and eat it to although I see them try day in and day out.

Most of the properties here you can get for a good price but the repair value is what can eat you alive.

Find doctors list and invite them to a restaraunt, eat and greet.RRSP - the CA equivalent of an IRA - this looks good - http://www.amazon.com/gp/offer-listing/0471642444/ref=dp_olp_used?

This one will be a buy and hold in Memphis, TN.Numbers look like this:Purchase price $122kConventional 20% down and financing 80%MAIN HOME: 4 Bedrooms, 3 Full Baths, Living Rm, Dining Rm, Hardwood Floors (Currently rented for $ 1,300 per month - Current tenant for nearly 2 years)Updated Electrical WiringNew Heat and Air ConditioningNew Exterior Paint New Interior Paint Refinished Hardwood Floors Remodeled Master Bathroom (12" Tile)New flooring in kitchen and diningNew Light Fixtures throughoutNew Doorknobs throughoutNew Blinds throughout Large Updated KitchenAPARTMENT 1: 2 Bedrooms, 1 Bath, Full Eat-in Kitchen, Large Living Room (Currently Rented at discount for $ 725 per month to same tenant in 1 Bed Apt (Typically rents $ 785/ mo).

Yes the HOA eats quite a bit of the profit.

They can simply get a bigger fee from true cash buyers as they dont eat up their margins with the extra costs.

The cost overruns could eat up your dream and cost you many nights of sleep.If you need to ask the question, at the very least you may want to consider bringing in an experienced partner.

That is, expenses, vacancy and capital will eat up 50% of the gross scheduled rent.

Maybe you just eat the price reduction which reduces capital gains... ??

A rehab and sale can take well in excess of 4 to 6 months.Lastly, lawyers and professional organizations can be expensive and eat well into your capital.