Perhaps I'm mistaken, but what I understood is that he was pointing out that your projections seemed to be wildly optimistic, and allowed for nearly no room for error.

In fact they could very well be random numbers dreamed up by an optimist.

So using $1350 for your estimate is actually optimistic, not conservative.

Even with an optimistic estimate assuming self management and working for free I get $187 a month and 11% cash on cash.Prices are based on comps, though, not cash flow or rents.

I have no Real Estate investment experience but I am very optimistic about the many possibilities ahead.Of the many goals I aim to achieve my first would be single family fix and flip properties.

The optimist/semi-realist in me says I may have struck gold here.

I was optimistic on the project until I read this:https://www.expressnews.com/real-estate/article/De...Does anyone know if he has ever actually finished a development?

I am extremely interested in seeing customers get exactly what they want.Our office standards and my standards are to do it right, do it completely and win- win for buyer/seller.Over the years I have been active in community affairs, am past president of an Optimist Club along with other service clubs.

Often wholesalers are full on optimists and will inflate the ARV (after repair value) and underestimate rehab costs.

Say after all costs land is 200,000 and building is 300,000 with parking lot and improvements.Now 5 cap value is 1,000,000 but 6.25 cap which is optimistic  on those is 800,000. 800,000 X .06% is 48,000 commission.