I have seen a few condo associations that have a first right of refusal on any units being sold but have never had one exercise it on a sub 2 deal.Shawn

Ok its outta hand I apologize, but then again I had to do this just for the exercise of mentioning the various extremes in trying to get free labor or cut costs.

Finding deals that cash flow here are a good exercises in deal analysis and learning how important other considerations are besides the numbers.

Later when you get the income up you can exercise your option to buy it.

At the time I didn't think to negotiate on some aspects of the agreement as I didn't think it would cone to exercising it but I was wrong...anything can happen and change.

Even though I have no short-term intention to exercise them, you never know what the future holds.

These exercises will help you, to narrow your focus, so you can concentrate your efforts on learning what is necessary to achieve and become successful.

The confusing part to me is that the MLS listings will provide the 1) Gross Annual Income 2) Insurance Expense 3) Gross Annual Expenses, however a quick division exercises reveals that #3 Gross Annual Expenses are 100% of the time less than 30% of #1 Gross Annual Income.

I think a more instructive exercise is to take a few flips and work the numbers backwards.

You then want to find the median price per sqft (this whole exercise is to do 2 things) 1) check the current and actual validity of the median price per sqft figure the realtor gave you for the area. 2) to help you find your first deal.