Suddenly, a lot more people like that $1600 free cash flow delta between rent and PITI and think that would be a no brainer to buy.Well this is one of my properties.

I just have the 2018 + delta 2017 numbers added together in one line item.  

Or 320.00 for a nice pair of delta toilets , you can install with no tools.

What's amazing is to see everyone's willingness to share their stories despite any obvious delta in experience levels.  

I think Brandon T coined the phrase "deal delta"....saying that there are three things you need to pull off a RE deal...capital, knowledge/skills, and hustle. 

Investment Info:

buy & hold investment.

Purchase price: $35,000

3 bedroom 1 bath single family house

While I certainly believe the pro's who have done this before, I have heard from the bank interested in sponsoring the loan that I can use an expense ratio of only 35% in my operating data for the first few years.My question is, how can there be such a large delta between what the pro's are saying versus what the bank is saying?

It doesn’t make much sense when the break even is 50 months, but it certainly does when you capitalize the NOI delta at a 5%-6% CAP!

Yup these no equity deals are a fools errand and taught by those just looking to sell their wizbang system.rule number one. there must be EQUITY.. no Equity no deal.. no matter how u buy it. at least as it relates to lower value assets IE rentals and such.you may do this on prime A class that you have a good idea will go up in value.. that may be worth it.. but for most distressed assets. to do all this to hopefully make 100 or 200 on the delta is a ton of work for very little money.

I would win either way.. one i wanted to own the asset so if no one bid I had a project.. and if it had spirited biding I made the delta between the price I paid and the full credit bid at sale. those spun the yeild calc into the 100% apr range when we got paid off in 2 weeks at the sale :)  Sadly Mrs.