The realtor is trying to drum up business and like the NAR frequently does is putting an extremely optimistic spin on things.

I want to be optimistic but realistic.

The book has some relevant info.A group of investors called Affinity Neighborhoods got some publicity about similar projects: http://articles.latimes.com/2004/jul/25/realestate/re-fixup25http://money.cnn.com/2004/07/15/real_estate/investment_prop/affinity/I started a website for the neighborhood, and tried to post optimistic things on it.

Even the most optimistic estimates aren't that low.A more realistic estimate for cash flow is 50% of the gross scheduled rents, or $5,100.

I have heard many be surprised by unexpected expense that could have been avoided, such as sewer repair costs.Also I think a lot of new investors are optimistic on:-holding costs (including interest, taxes, utilities, hoa dues etc.)

Avi, there is a lot to know about when it comes to rehabbing but I will cover a few of the most basic mistakes new rehabbers make, although it sounds like you have some real estate investing experience so hopefully you can avoid these:1) Overestimating ARV (after repair value): it is human nature to be optimistic and look at the best case scenario, but you have to be realistic when analyzing the end sale price of a property.

But sticking to my resolution to be an optimist, I'm chalking it up to a year of how NOT to make money. :)I've always wanted to get into rehabbing, and while I have no real estate experience (does watching DIY or HGTV count?)

I am always optimistic, and the worst that can happen is that it doesn't work, but I've learned volumes that will apply to this deal or perhaps another.I always keep my eye on the prize, assuming that it WILL work out.

Talk to a Realtor, then deduct 10% from what they say (they are always optimistic.)

314 Cherry St Southeast Grand Rapids, MI 49503Can't afford it but it looked good to me, even with the owners optimistic rental forecast.