I'm not trying to be harsh but that's the reality of it.

In this age of reality tv, and "I'm special" mantras, he has made himself to be a king among kings.

I just don't think that's reality, no matter what the selling broker claims.You're overestimating the depreciation because you're using the 27.5 year schedule that applies to residential properties.

To answer your specific question, property taxes and insurance ARE part of the operating expenses.Operating expenses do NOT include Principal and Interest, capital expenses, or depreciation, (although in reality you should consider an allowance for capital expenses in your cash flow analysis).From a practical standpoint, you subtract the mortgage payment (P &I) from the NOI to get your monthly cash flow.

Two areas you need to factor in that have not been mentioned are:- Lending realities (70-75 ARV loans are available, but 65 ARV is offered in more abundance)- Exit Strategy (you need to back out liquidation costs [seller commissions] and capital gains from your gross ROI calculations).Regards,Scott Miller

I thought I’d save money by being my own realtor but in reality because I wasn’t selling any property my realtor became an asset .

Your market may vary, but the reality is that nearly three fourths of applicants want possession immediately, so waiting for checks to clear is not a reasonable option for them, and it's dangerous for you.

I am just pointing out the difference between the hype and the reality.

See how asking prices are jumping, and realize that there are a lot of underwriting, financial, structural, environmental, etc issues to work through before any real project gets started.I don't mean to sound harsh, but it is just a simple reality that this takes the time and effort of a community.

Tim, While there are GURUs out there that seem to have figured out how to navigate these waters (Alan Cowgell SP) seem to be one of them... the reality is that once you have someone lend you money you are entering some special realm involving securities.