Very valid points there Bill.

The numbers are like -$800 cash flow, so yeah you all validated and aligned with the calculator that this is a poor deal.

If I add the machines to one of the units water tank than I would have to pay for that units gas bill.

Zillow probably thinks that validates the business plan.

They also have remodeled a huge old newspaper building into a retirement home, new Casey’s gas station, a bunch of tear downs.

phase 1 is usually a lender requirement.. on that small of project unless you have some knowledge that it was once a gas station or something..

I run into this scenario more often than not so I just get the property under contract (which may or may not be valid) with the suspected heir and then let the title company tell me what they need to insure title.

Once you turn in plans they will make you fix everything to code so you have to have a contingency budget for that alone as you won't know about these costs until after you close.Also, I haven't seen anyone complete a gut rehab in less than 10 months (in Chicago) so you have to consider your holding costs for a year (taxes, insurance, security, lawn maintenance/snow removal, water, gas, electric, cost of money).

But your broker “the jailer” I’m sure isn’t in his glory with all of this talk about commission when you and everybody should be concentrating on selling, producing, networking and yes of course making a valid commission.Please don’t take offense toThis, but greed only gets you so far, and yes I understand it’s in writing but again let the ink dry on the Agreement before demanding commission on a home that hasn’t even closed yet.

That said, it is still valid to find suitable return metrics residential properties as well.