The standard line on BP is that this is speculation and immediate cash flow is the only thing that matters.

I think that is important to say as DF when brought up on these boards sparks whirlwinds of confusion and speculation for some.  

In this moment in Lisbon, talking of a cap rate over 7% in LTR is absolutely real estate speculation, (but the future may reserve us a back to before crisis value and therefore the bought property can be sold by a higher value.

.$8333 - $3800 = ($4533)Your properties collectively are a major liability in real numbers producing a negative cash flow of $4533/month.Your equity is killing your cash flow and needs to be pulled and reinvested or the properties should be sold and invest the cash in REITS, income funds, mutual funds etc. that would produce a reasonable 10% return without the e nuisance of owning real estate.Without the speculation on appreciation the properties are not worth owning and you risk losing equity in the event the markets shift.

Here are some answers to the questions below.Eric:I'm looking into getting an estimate this week, but I speculate at least 50K-100K based on other comps in the area (although I'm not sure how much in dollars any of these issues would factor into the pricing from a market stand point of view, other than to negotiate in the worth of cost and risk to the buyer).Ali:Getting estimates from GC's and architects has been a little bit of a challenge with quotes all over the place, as I find them a bit reluctant to work out multiple plans and prefer to focus on one at a time.

How do you look at investing in a guessing game. this site is full of speculators and investors. 

Otherwise you are counting on a speculative buyer. 

It is hard to know just when things will slow but there will be speculators cashing in on quick turns as prices rise long after cash stops flowing from rentals.

I speculate your operating agreement or other legal items you draw up as partners (or members, if LLC) would govern how you pay for the expenses, how the note is treated, and who gets what and in what percentages.

I've never seen anyone benefit from enabling them.When I started, I had very little cash but good credit and a number of credit cards that I could get advances for 1-1/2 to 2% of principal + 18-21% interest.This is how I learned to dance, I think.Buying and fixing houses is speculation, plain and simple.