The one I spotted today appears to require quite alot of work from the outside, I've seen it before but it wasn't for sale and the brush and over grown trees hide the house pretty well.

When I blew the lines out, enough water came out that I could've made a pot of coffee, brushed my teeth, and shaved.

First the rule is a "rule of Thumb" and you should always run actual numbers to analyze a deal.There are a lot of costs you are not accounting for; primarily soft cost/ holding costs.Here are some of the costs you haven't includedClosing costs x2Transfer taxesloan costspoints on the loaninsurance (builders risk more expensive)ElectricityWaterProperty taxesSeller concessionsStaging costsIn general a round trip of both buying and then selling can cost 15% of a deal easily and 20% if you use hard money and take a long time to rehab and sell.

Further reading:http://www.biggerpockets.com/forums/48/topics/7799...And brush up on you search skills. 

Eg, I have an acquaintance who noticed a simple mechanical dermal brush in Korea and thought it might sell in the US, he secured US distribution rights and sells it to high end dermatologists in US for many times what he pays for them.

I already gave @Adam Wright a soft yes on the saginaw library meetup so it'd be great if that works out.  

Most of the time there is not the proper time, condition, and sense of reality for the seller to use this option.You have to be wondering why we go through all this,  well most people know they have to sell "they never could afford the home" your job is to softly help them come to this conclusion.  

Curious to hear from any professional mortgage folks, but my observation has been variable soft investment income (notes, other loans, equity investments) is counted if shown on 2 years tax returns (though expect something like only 70% counted and only the lowest amount).

Soft money like me, or hard money like OP is talking about, makes no difference. 

Hello,Long time lurker, decided to start being active in the BP community.I'm a lender, of the traditional 'soft money' mortgage sort.