I've been stuck with title search fees a few times this summer, so I am refining how I screen deals before sending them to the title company.For example, my last seller bought his property without a title examination.  

This is a great business if you have the nerves to over come the tough days.

I normally do what you said: examine previous income and use that as a baseline.

It's a good price point for entry-level landlords and creating turnkey properties can become a lucrative business for you down the road if you learn it now.I would tell your family it's risky but the risk is backed by real estate and the worst case scenario is that only 50% of their money may be returned - come prepared you're asking for their money so they have the right to question and examine all of your ideas and assumptions. 

By most definitions, that price is now market value -- there was no coercion, no fraud committed, no "talking someone into" anything.Out of context, I was addressing Steve's point.When you took your real estate examine years ago, you were exposed to the accepted social aspects of real estate.

It is the intent of the contract that is going to be examined, it is the responsibility of the tax payers to show intent and to provide justification, you can't just say I didn't intend to buy it.

Examine the rent roll, and do a market survey.  

Scenario Analysis IRR in "Business-as-Usual" scenarioIRR in early repaymentSalvage value in case of foreclosure – State FC remediation policies, FC cost & timings, LTV, FC types allowed in state, REO sale discount rate, holding costs (taxes, HOA, insurance, …)Is this list missing areas or issues that need to be examined?

And I have bad nerves and an anxiety disorder to begin with!  

I think that is why there is an additional Tax Examination for CPAs who deal with the U.S.