Basically, I put up the money and they have done all the work.

If so, you're likely one of the best landlords in the country, and I would recommend buying much larger apartment buildings/complexes where you can make a LOT more money...My biggest concern based on your answers is that if you're doing all the work yourself (leasing, maintenance, turn-over, landscaping, evictions, etc), you're probably spending at least a third of time time (if not a lot more) on this one property, and this one property is only earning you $20K per year.So, you basically have created a job for yourself, that's earning you less than $60K/year.

Here's the basics: Balance of 125k note due on 10/09.

We agreed on the basic terms and then went to an attorney to write it up for us.

If you don't have that, you're basically offering the same property as her, but at a higher price.

So basically, I just need to offer the figure that will give me an adequate amount of cash flow and not worry about how far below market value it is.With my first post...am I missing any obvious expenses that I should be considering?

He has a great, long chapter in there on financial analysis, and while you won't have your MBA when you're done reading this one, you'll understand the basic metrics.

The basic formula is that if your purchase and rehab costs are 70% of ARV, you use hard money, and you sell it within six months, you stand to make between 10% and 15% of the ARV in profit.

I'm just starting to learn the basics, like cap rates.

You need someone that is up to the responsibility, is well organized, and has a thorough understanding of most of the basic systems of your typical buildings.