The numbers then were (approximately):520K purchase5K Acquisition (legal, cash for keys) 80K soft costs (permits, architecture, structural)900K construction costs (750K contract, change orders, fixtures)50K financing10K insurance 85K closing costs (66K to other agent, staging etc.)$1,650,000 all in costs$2,640,000 Sale price$990,000 Profit A good portion of my profit relates to the rally in home prices during the time my project was in process.

Right now, looks pretty healthy,  so banks  will  continue to lend.In many expensive markets, the real estate market is already "soft." 

. $140 After repair value -28 Minus 20% soft costs$112 - 20 repairs $92 break even point $ 85 your price $7k your profitThat is a pretty slim deal.

Some items of consideration (which may sway you the other way):Soft vs. hard pull: Since you are initiating the report, the tenant's credit is dinged.

I would try to get a friendly conversation going, soft sell, regarding what are they planning on doing - steering them towards their smartest solution.I don't know how to figure an offer for Pre-foreclosure.

My rule of thumb is to have soft commits (this means you have to ask investment level up front) of at least 3x what I think I will need for the deal I will eventually do with them.

I know it is hard to be a though landlord, but being a soft one can be devastating. 

They do not understand that lenders do a soft pull right before closing to see if any new debt is shown that alters the loan approval.I don't do residential but I am helping my brother in law.

That does not include the cost of buying the land or any of the soft costs like engendering and architecture.

(Basically, I had a soft spot for the tenants, and they caused me very little trouble.)