FIRST QUESTION- Closing Prorations: Not sure which one to chose (default is the first one)Line 120 - Real Estate taxes shall be prorated at closing based on  {The net general real estate taxes for the preceding year, or the current year if available} {Current assessment times current mill rate} {Sale price multiplied by the municipality area-wide percent of fair market value used by the assessor in the prior year, or current year if known, multiplied by current mill rate}I checked the default option which is the first one, but want to make sure it is the right choiceSECOND QUESTION- Property Condition Representations:  Very confused on this sectionLine 150-168 - Seller represents to Buyer that, as of the date Seller grants this Option, Seller has no notice or knowledge of any Defects other than those identified in Seller's disclosure report dated _______ and if applicable, Real Estate Condition Report dated ______, and, if applicable Vacant Land Disclosure Report dated _____, which was received by Buyer prior to Buyer signing this Option and which is/are made a part of this Option by reference (Complete dates or strike as applicable) and _____________________ (Insert conditions not already included in the disclosure or condition report(s)) CAUTION: If the Property includes 1-4 dwelling units, a Real Estate Condition Report containing the disclosures provided in Wis.

@Alexander Felice I multiplied the Monthly Cash flow by 12 and got $1380.

(or multiplying it by 4).  

@Darrin Carey - Good catch on vacancy, had the number left in from when I was considering 1500 rent and didn't multiply it by 12!

Multiply by 4 or 5 and that could be over $1,000/month so you'll need to have money to cover these MINIMUM payments.

I was thinking use rental analysis to determine ARV, then treat it as a flip, so subtract repairs then multiply by 70%.Then I started going cross eyed.

I realize that this is directly related to the fact that you cannot run returns that have to multiply 0 but as someone looking to make their first purchase in ~6 months using zero down on turn-key or light rehab, how are the rest of you running your numbers?

Fact is, if you don't have basic business and real estate knowledge the risk of failure is multiplied and your efforts become anchored in luck more than anything else. 

You may want to try to multiply yourself..............Consider having 2-4 agents looking for bargain real estate for you as a Fiduciary Buyer's Broker. 

Going by cap rate and the area's gross income multiplier, my deal is great...