Furthermore they teach you outdated methodologies that may have worked 5-10 years ago.

fair return methodology used must be “concerned with the financial integrity of the businessas a whole, not the ability to obtain a return on a discrete portion of the business.”MNOI presumes that the rents Landlords chose to charge, in a year free fromthe idea of rent control, provided Landlords a fair return on their investment,as the rents that were charged were based on general market conditions, andnot the upward pressure that policy discussions of rent control may have onthe market.

If its that hard to find comps, I would probably have them hire an appraiser because they can use less than ideal comps and better adjust for the differences and also have a methodology and rationale for how they chose the comps used and how they adjusted.

You can average the amounts or use the higher $29,000 figure if it reflects market conditions, as long as you document your methodology and provide evidence, such as sales data or an appraisal.

Similar to a broker’s opinion of value, this analysis is less detailed and may not follow USPAP guidelines.Replacement cost method: This methodology is supported by a 1982 tax court case, Meiers v Commissioner (T.C.

The methodology of the study would not have been able to capture that nuance.Unfortunately, for the last few years, there has been a missed opportunity for Ogden to take advantage of the comparatively lower price points and really cater to smaller pocket books with energy to rehabilitate the old houses. 

This means the 50% rule fails now (50% + 60% = 110% --- 10% more in costs than rent), and other cost estimate methodologies seem to yield negative net cash flow.Am I thinking about this correctly?

I was told by one that he “learns by doing”, and yes this is a verifiable methodology.  

While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

Guru Buyer Beware - in this circumstance the guru does offer sound investment advice, methodology, and has been successful himself using this.