Being around Xtreme athletes for years, that was a common saying around our house with Professional Freestyle MX riders practicing in the backyard.

For example how many days the property has been listed and percentage of price drops and frequency of drops.You need to know if this bank just listed at an aggressive price.If so they will get multiple offers.Then it comes down to not only price but type of financing versus paying cash and closing times and contingencies.I just find that most times if the property needs a little carpet and paint and that's it the bank will put new carpet and paint in to maximize recovery on the asset.If not an owner occupant still will pay more than an investor.Many new investors try to play it safe and low ball carpet and paint jobs and then when offer after offer is rejected they get disheartened and give up or stop trying for awhile.They don't want to take on bigger rehabs but that is where the profit is.You need the calculated risk for the reward.For a flip in that area 200k is high for Georgia.

My brother has been a dealer for decades.He goes to the private dealer only auctions.Buys the NO STARTS.Just like houses that need big fixup the money is in the problems not the running ones.Newbie dealers always bid up the running ones but don't realize they Jerry Rigged it to get them running.Then the new car you bought you try to sell it off with financing and money down.The problem is you get a little down and then the POS car breaks down.The people say they can't pay to fix it and can't get to work and say to you TAKE IT.My brother instead buys no starts.Takes apart car top to bottom and sells for cash with a warranty.Target is buying for 300 to 600 and with money in maybe 1,500 in or less.Sell for 2,500 to 3,000 cash is where the sweet spot is.Sometimes his spread will be even greater.He sells about 65 in a 2 month period during tax time and the 2 to 3 a month during the off peak times.By putting back together he knows what he is warranting and selling and by them paying cash you don't worry about no pays,damage to the vehicle,and paying tow recovery fees which can get real expensive.Especially if they are hiding the vehicle.

So the builders are compensating for the slow recovery with upping the deals each month.So I think with short sales many banks are looking at markets heating up and getting higher prices than what the buyers are wanting to pay as an offer to the seller. next time you look at a short sale you might want to look for the terms (pre-approved) short sale.

Cash recovery party and Real deal property tour this Saturday at Green joes coffee in Greensboro NC. 10am-12pm 2915 Battleground ave

FWIW, we would start with a management company and transition to self-managed in 1-2 years, though neither of us has any particular passion or aversion to rental management.General detailsPurchase @ $330k in 2010Current market value: $560kCurrent loan amount: $228kRevenueWe spoke with a trusted friend who estimated that the house could rent for $2600/mo in its current condition.Total (52 wk occupancy): $31,200/yrExpensesP&I: $1167/mo (~$14k/yr)Property taxes: ~$5100/yrInsurance: ~$1k/yrYard service, misc: ~$1700/yrManagement fee: 8% (~$2500/yr)Total: ~$24.3k/yrTaxesDepreciation: $12k (Rough estimate found from https://www.calculatorsoup.com/calculators/financi... with cost basis: $330k, recovery period: 27.5 yrs)Mortgage interest: ~$7900Other deductible expenses (prop taxes, insurance, yard service/misc, mgmt fee): $10.3kTotal change in AGI = revenue - deductible expenses = $31,200 - $12000 - $7900 - $10.3k ~= $1000We're in the 25% tax bracket, so these revenues and deductions add $250 to our federal tax bill.Total/yrRevenue: $31,200Expenses: $24,300 + $250 = $24,550Total profit/yr: $6650Even if we managed the property ourselves, our profit would be ~$8500.ConclusionThis is probably an optimistic analysis - it assumes 52 wk occupancy, and relatively low misc expenses.Since we have so much equity (~$330k), our return would be in the 2% range (managed) or 2.6% range (unmanaged).  

@Dave Saveri to preface, accelerated depreciation separates into three categories according to the Internal Revenue Code:"Personal, or tangible property" depreciates over 5 years"Land improvements" depreciates over 15 yearsBuilding, or structural components (everything else) depreciates over 27.5 or 39 years (which may change with the new tax reform to 25 years)That being said, some examples of 5-year property are: furniture, fixtures & equipment, carpet, decorative light fixtures, electrical costs that serve telephones and data outlets, shelves, decorative molding, etc.Some examples of 15-year property are: parking lots, fences, signage, etc.It is important to note, that the IRS highly recommends these property allocations (cost segregation) to be sourced according to the MACRAS Modified Accelerated Cost Recovery System, and the IRS Cost Segregation Audit Techniques Guide, and not estimated.

Commercial real estate lags behind a few years in recovery cycle from the last recession.

Your tax advisor will know your personal financial picture well enough to give you a definitive answer of what to expect.In most cases, a small amount of taxes are due each year after expenses and cost recovery (depreciation) deductions.

Mentors are always a great asset, no matter if you're an athlete, a cook or a real estate investor,!