It's an estimated cash on cash return given current rental rates subtract expenses assuming 7% interest rate, 10% management fee, 5% repairs, 5% capex and other expenses like mortgage, insurance, tax. it's a estimate to tell you what properties to analyze vs ignoreyou can see the are pockets of negative returns as well as pockets of positive return. this is to supplement the data @Devin Conley provided

Many of them might be skilled folks but they are not always the best estimator and business person. 

Send me a message if you want to chat in more detail (background is in live in flips, LTR, MTR, and STR).  

Hopefully, based on actual field measurements, past project data, and estimating software, your contractor can develop a detailed estimate that lays out the cost of labor and all materials for each phase of the project.

Originally posted by Account Closed1) https://www.youtube.com/result...2) https://www.youtube.com/result...a simple google will find details on tax strategies for RE investors, just find a good local CPA who can work with you and is knowledgeable.  

You and your legal, tax and financial advisors should review this transaction in greater detail, especially the PLRs, to ensure you understand the significant risks involved and are structuring the transaction as close as possible to the PLRs to mitigate some of the risks.

Please post more details once you meet, and good luck!

I laid out in detail the details and steps of the clean up.

Where do you find details on prices, demand, cash flow etc? 

The only creative way I can see (obviously not knowing enough details) is an owner carry with you as the operator and a JV partner as the financial backing.