Insurance contracts are complex because there are many variables that the average person will not know how to interpret.

@Dom J.My post wasn't meant as a criticism but as I re-read it, I can totally see that it could have been interpreted as such so note to myself: always check for that before hitting the send button.

Anyway, I think the readers of this post will understand 2 things, 1) How to calculate the IRR and 2) How to interpret the IRR.Once you get the Math, you start to understand that Cash Flow is just a component of a overall math problem.Don't be AFRAID of a Negative Cash Flow.

@Giancarlo Sarmiento before you pay an Architect or expediter to review every potential single family home that you see at a good price, I would suggest learning the basics about reading and interpreting zoning.

Just my philosophy@Karen Margrave If I interpreted your response wrong by not catching the rental part, I apologize 

@Christopher Cadenhead the formatting got all screwed up in my response but I put my interpretation of each line and then the line from the contract in quotes after.

Which I interpret as, what will it take to get it up to building code. 

I know others will disagree, but anytime an illegal practice is essentially, "I'll know it when I see it"...well, that's a problem because it's open to huge differences in interpretation.  

In my market, my role is not only provide the data but help my client's understand it and interpret it relative to what they are looking for.

OK, it makes sense that the company would do whatever they could to exclude "pre-existing conditions," to use a medical insurance term.I am inclined not to believe the agent's interpretation of how the home warranty works, and instead try to negotiate for closing costs.