Profiting when you buy"… means…"Purchasing a deal at a price that will allow you to extract the equity out of that deal as cash based solely on the plan that you develop and then based on your knowledge, skills and abilities you execute that plan to profitable completion."

That makes the P&I $266, which leaves you cash flow of $133 for a duplex.To make $200 in true cash flow a month, you can't pay more than $33,358 for this property.The trouble with these really low rents is that extracting $100/month for cash flow is a huge chunk of the rent.

And I should shut up and get off the soap box, but, the US leads the world in so many ways, and one of them is extracting money from the masses.Is it any wonder when consumers slow spending that the first impact is on business, then on government.

For all nonperforming or troubled assets they will be “flipped†if the value extracted can exceed 110% of the current “all in†investment or if the initial loss from the sale is less then the projected loss from a long term (3-5 year) hold.

From that, you need to extract a cut. $100 is a common goal.

The issue I have is that these gurus seem to target REI newbies in order to extract large sums of cash from their bank accounts.

Had to replace water heater and have water extraction completed.

You might not know the true weight of this tenant.I have watched shows on heavy people before on cable.You might be surprised that to move the tenant out of the building the fire department and emergency personnel might have cut out the side of the building to get them out of the property.There are hospitals and other programs who might take these individuals to help them.So you might want to factor in extraction costs and damage to the building in your offer.

If the buyer had the cash, you probably would have extracted it out of him/her to begin with!

. :)Now if it has extra developable land or is close to a corner for commercial development you could extract a very good return out of it changing it's use or parceling out the extra land to different buyers.On the income aspect alone it's a loser.It sounds like the improvements they have done to the property they are trying to get paid for with an inflated price.I saw another 40 unit the other day.An out of the country buyer bought it and rehabbed it and is trying to sell for 3 million.The property is only 40% occupied and the rents are too high.When I see brokers talk investors into this sort of thing it makes me scream........