If the property values are such that the value has decreased drastically, which ours did on the one that lasted 24 months, you need to have an exit out of the contract, if the lender will not accept a lower amount due to the differences in the current values.We do not put this in there with the expectation of using the clause to back out of a property, but it is necessary when the short sales go for long periods of time.

Lately Ive seen multiple postings and and articles about people having trouble finding inventory that fits profitable numbers.

How is the inventory in your area and what does your 2013 look like?

It pushes them to finish faster which decreases your carrying costs.Get a good lawyer that focuses on development (not just real estate transactions).  

Some observations on the formula:as the balance decreases it gets harder to cash flowas the value increases, it becomes easier to cash flowNeither of those facts make sense to me, but the first one is especially hard to wrap my head around.

BAH rates are decreasing.  

I watch stats on a daily basis and here in Sonoma county I can tell you that the ratio of price decreases of listings to price increases is about 10 to 1. 

If I was looking for turnkey companies I'd like to invest in areas that didn't see a huge price decrease in our most recent recession.

As to how would I go about learning the markets....research listed properties and those sold, population growth or decline, job increases or decreases and types of jobs, capital improvements by city/town, how are the schools, what's the typical sales price , what does the typical sales price house look like, what are typical rehab costs for that area, and the specifics from good neighborhoods and bad, etc etc.Do the items listed above change, of course but they don't tend to change overnight and the mentee would be shown how to get all of this information. 

Even if the value decreased because of the foundation, I'd still be generating income.

Decrease in days on market (DOM).