In some states it could require a license if your sole or majority income was derived from such activities.IMO, institutional notes will yield about 5 to 8, maybe 10 points over the note rate, to hold in portfolio.

My calculations were based off the value as derived from the income approach (that came in at 160K); however, the sales comparison approach only values it at 125k.

True value is actually derived from "what the market is willing to pay - today" and that can only be obtained from buyers.To your success in real estate!

This will also depends on state law if income derived from collateral is to be recognized as a reduction of debt but usually it's first applied to holding costs.Either way, it's irrelevant really to you other than saying they have not been hurt as badly if no rents had been paid, they either reduce the expense or go to income that is still applied to reduce expenses and loan losses.Have they received rents?

How are you deriving your NOI?

So while a cash flow analysis will be performed on a commercial property, those rates and figures should be derived from the comps, or at least of database of similar properties.Also, it's great to say that the numbers work, so the deal works for your model.

A lot of wholesalers have never rehabbed a home and derive their repair numbers from talking to other investors (who often lie about their repair numbers) or stuff they read on line.

I think when you have the FED printing like Weimar making us the next banana republic, then its hard to pinpoint when the tip-over will happen, but common sense dictates that you can't print and hide the 300+ trillion in derivatives debt.

But the locals are not going to pay more than what would derive a 2% rule or better thereby keeping values in check and not rising which was my point of the thread in the first place.As you know there are many bad areas of CA having lived there like you did for years and me living in the bay area for 40 years I can tell you were they are..

That derived price is my strike price and I'll offer little below to allow negotiating room.