They must be held as rentals or for appreciation.True, this is where the IRS gets to read your mind and judge your motives :roll:

Market CAP Rates will vary a bit from region to region for sure, but a good return on investment is sort of set.GOI is Gross Operating Income.

If you have termites or some other sort of troublesome insect, you certainly want to get that inspection.I think home inspections are pretty useless.

The owner is a long term investor (Landlord), and appears to not be so motivated.

Most REO properties have a minimum commission of $1000 (regardless of how low priced the property is), which is usually enough to motivated agents that typically deal in these types of properties.You just need to find one of these agents...

If you screen sellers properly you can find those that are motivated enough to do this.

And properties can move for far below list price.The out-of-state apartment owners are frequently motivated sellers.

Although it is true that you are allowed to negotiate shorts while acting in the capacity of your license, recent laws that have passed may be able to construe other motives.

I can sort of see their point but I think the house is getting pretty old and could need repairs soon also CA is apparently long over due for an earthquake.Any ideas?

A take it or leave sort of thing.