Originally posted by Mike M:One of my best contacts told me that an REO listed for 180,000 sold for all cash, 225,000.This is common place in So CAL for REO properties on MLS.Banks have been pricing properties lower on purpose to get 20 offers and have a bidding war between the buyers.This is exactly what NOT to do as an investor.

Thats exactly what not to do...

yes, every city has its own 'default cap rate' regardless of the asset, it could be MF, single family or what not.

They won't make any money on the front end through fees and what not since I believe they are capped at 3% max of the loan amount per federal guidelines.  

If anything, men that have been thru that stuff are providing some valuable advice on what not to do.

@Mike Reynolds Don't be messing with my dream ;) I can handle a flurry or two and long as the temp averages 60+ which it seems like that is the case from everything I have seen...I will put up with 60 :)  Connect with me on FB and what not so we can stay in touch.

The best part of this... you know some of what not to do!

But at this point, I see it as cheap tuition for an education in what not to do in my own business.

I have a section on drain stoppages that cite that anything besides that caused by defective plumbing, tree roots, or acts of God will be the responsibility of the tenant and contains a list of the obvious of what not to put in the drain and that tenant agrees to pay plumbing cost to clear stoppages beside the above.

Fantastic, that was the entire point of this thread, to educate others on what not to do and what to do.