I believe understanding and implementing those elements can translate to sustainable success in any field.Alas, we are not here to talk about stocks or psychology (though I could ramble on for thousands of words on either topic), let us discuss real estate.

Anyway, here are generalities:EnvironmentalsSurveyTaxesInsuranceOccupancyUtilitiesLeasesRent RollRent comparisons against other complexesMEP's (including sewer/septic)RoofStructureWindowsCosmeticsAppliancesOF course, these will vary depending on the type of purchase, for example having an environmental report on a SF is not customary, however, it is on large MF. 

The city had told me to simply put holes in the bottom of the pool and cave it in,,,however the house is now vacant and a fence section fell down, now the city is involved in the house, the Environmental Department wants every bit of concrete removed when the pool is taken out (additional cost about $5k which I hadn't budgeted.If I decide to walk away because of this, the house will go into foreclosure, the city has told me they will go in and have the pool removed (and I'm sure they willl end up spending a lot more than I would),,and put a lien against it.Common sense would say they would come down a few thousand to help me with the cost they caused by taking over 2 months to give an approval,,but I doubt they will, the house will be vacant, the city will put a lien against it, and the bank will end up getting substancially less than they will if they sell to me, but thats probable what's going to happen (at the same time short sales can be super deals, if they work out)andy

When you are out driving through neighborhoods looking for prospective REI (birdogging for RE investors) what key elements should you lookk for?

So, the common element is that each of these properties is in default with their lender?

I know you asked for a demo contractor (no ideas there except if the local Habitat ReStore sells architectural elements they might have a suggestion or two) but this captured my attention.

Do you understand the three elements of risk, and thus the best way to reduce and even (dare I say) eliminate risk from your REI?

They thought they were getting a great deal and then learned after being notified they were the winning bidder, learned the sites were not only contaminated but the cleanup was going to exceed the purchase price.Many of the bidders are new to the US and want to buy a piece of America but are not yet familiar with our environmental laws. 

So just check on that element to see what to do next.2.

Has it been inspected for environmental hazard?