For example are they making a major mistake?

I wanted to get a breakdown of all of the costs associated with using them to fund the majority (90% LTC, 100% rehab) of this deal.

Major items include clearing overgrown shrubbery, replacing doors, fixing up the deck, getting a pond running again, and removing an in-ground hot tub.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Builders are not charitable organizations to deliver below market cost houses).

This is why most properties are 'bought' with a lease-hold contract of x years + y years extension (mostly 25-30 years + 25-30years extension).Bali is an organized wild-west with a lot of opportunities, that's for sure.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

If wholesaling is the exit strategy, this will show how much of a discount is needed to buy.Major market areaAll real estate is local, but major market areas influence the formula.

I positioned mine near Case Western Reserve University and the hospital system, and that has been a major advantage.

Especially if the seller wants to boast how amazing of a property this is for you to purchase, this would be the time to brag about the rents, how well maintained the property is, how great the tenants are, and so on...Hopefully the seller has been organized and is able to get this information to you quickly.