It does account for the fact that if you own 100 properties for 10 years you're going to do some evictions and have some tenants wreck the place.

I'm originally from Dallas, Texas, and moved to Lubbock to go to school at Texas Tech (wreck 'em Tech)!

The house was wrecked and left an absolute mess.  

My hope being that the other units would be a wreck and that I could beat that price down instead of pulling out. 

Exciting, nerve wrecking, etc. good luck!

This thing could be a complete train wreck for all we know until you take the time to go look at it.

You still want to get a quality tenant who won't wreck your unit.

I'm really hoping Llewelyn chimes in here because he should be able to give you much better advice and may say what I've written here is a train wreck haha!

In other words, just because you opportunistically acquired, doesn’t mean you can opportunistically sell.E.g. you can have a train wreck in DFW today and will get aggressive bids which are not aligned at all with how well the asset has historically performed.Cap rate is used on stabilized properties not value-add.

Worst case, if a home is a train wreck and I'm just not sure I can always call on him to take a look for me.Calling a contractor in for inspections might save you from putting a complete tear down under contract.