I was recently able to observe a flipping transaction from walkthrough to contract which gave me incredible access into the world of flipping properties.

Some initial advice/observations would be:-The cap rates here are on the low side.

But it also further validates what I'm observing - That it seems rare and unlucky to buy a property subject-to unless you are paying market value for that house.

. "-" Cracks were observed in the stucco .

That's my main reason for this post...want to observe what more experienced investors do when evaluating the property, so I can develop a method that has worked for the masses (if such a method exists), and not repeat mistakes already made by those who have already made them.

@John Chapman - If you don't mind, please post the BP link to this thread, so that we can determine if your thinking is in step or out of sync with others who read it.....thanks.On the other hand, I am in agreement with @Adam B. who made some interesting observations and provided excellent examples of his experiences.At my age, I often ask myself....am I smarter than today's 6th grader?

Make observations about the condition of the home.

My only relevant observation is that we are currently selling a house in N Arizona (north of Prescott) and virtually every prospective buyer and realtor is asking about the availability of water and the size of the supply.

Every location and property segment will likely be different so you need to research each location you are considering.Las VegasBelow are my observations on supply and demand for the narrow property segment we target in Las Vegas.SupplyLas Vegas is unique in that it is a tiny island of privately owned land in an ocean of federal land.

@Seth Williams -Great observations!