now that's just worse case.. but something you need to know about.Subordination works for those that can step in in the event of default.. for passive investors its what I would consider a fairly risky play..

I don't play the appreciation game. 

I'm looking for an investment with some play money…with hopes it might turn into something seriousCarlos

So I'd like to play devils advocate against myself here and see if you could help me see the light or where my logic is flawed. 

Think about it like playing the guitar, or any instrument, you are not going to be able to just pick it up and automatically be able to play whatever you want. 

If the property is in disrepair you can also check with the local inspectors/clerks office and see if the town/county have slapped the property with a "Lis Pendens" (spell check) these sometimes do not show up on a title search.

It’s hard to articulate a number, but I feel confident saying that the appreciation play in EP is a pretty solid one.

The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.For what its worth most deals I deem meeting minimal IRR standards is 13-15% but you have to dig a little deeper to uncover the real placements of cashflows and capitalization events... and then dig even deeper to verify the assumptions such as occupancy, rent increases per year, and what reversion cap rate was used.Again I don't look for IRR cause its manipulated a lot instead I look at total return on a 5 year basis.

Maximizing profit also maximizes work - there's no free lunch in life - so I play it by ear.

if so, how did you play that?