We subsequently formed a second JV/LLC to develop a spec home in the Kirkwood neighborhood on an infill lot picked up in a tax lien foreclosure.  

The institutional guys are used to ARGUS, and now Enterprise  versus DCF.

I live in the Seattle region, which is just too darn expensive for such an enterprise, so I am mostly considering Houston at present.  

If the buyers don't think they will make money then they won't be buyers and then Im stuck with a property.I was wondering though what contigencies to put in a offer on an REO so your post and thd subsequent answers were great!

I guess the subsequent cash flows would have more meaning for highly stable organizations signing leases and thus providing ultra stability to the investment.

Rinse and repeat.Before you know it, you'll have LOTS of units, and you will have avoided taxes along the way, increasing your purchasing power with each subsequent step.

If it's just the the lady and her brother involved, you will probably need both their signatures on the purchase agreement as well as all the subsequent doc's that need to be signed during escrow including the Grant Deed.

So while you will defer federal tax and depreciation recapture you will not get the deferral from gain and subsequent tax due to the state in your case.

Chris, I am self-managing but I could offer you a few guys that I personally know:Ron Parasole with Parasole Properties, Phil Kolatis with Kolatis Enterprises, and @Marc Winter with Landmark Property Management.

This may make them look at your refi or subsequent purchase loan more favorably.The other bugaboo is going to be the timing of the 1031.