Worry about this fantasy scenario of "too many people in Oakland want to sell homes to me at price points that I love as the buyer!!!!" 

Older units are caping at 6-7 around here and to me, that implies you are getting pretty close to a top.The guys with a lot of experience all saying you have to be super selective  right now.Whats even worse, to get to that cap of 6-7 you are usually getting pro forma or fantasy numbers!

There is no sense living in fantasy land.

Am I in fantasy land thinking that somebody out there will lend 100% of purchase & rehab costs and also be ok with full payment after closing?

Brokers always submit fantasy world pro formas...get used to it ;-)

There are a lot of fantasies sold to buyers at the end of the day.

I haven't seen a 2% rule anywhere realistic and have been assuming that to be 1% ages now.Just for giggles, I analyzed thispropertyhttp://www.trulia.com/property/3229148553-1-Quimby...renthttps://www.rentometer.com/results/tt_kOY8yPiIAnalysis Acquisition Cost Breakdown Purchase Price $150,000 Downpayment $30,000 Finance Amount $120,000 Improvements $7,000 Closing Costs $4,500 Total Cost $161,500 Cash Outlay $41,500 Financing Details Downpayment 20.00% Interest Rate % (anual) 4.50% Closing cost % 3.00% Loan Period (years) 30 Monthly Mortage Payments $608 Monthly Annual Monthly Annual Revenues conservative optimistic Gross Scheduled Income 1,200 $14,400 $1,500 $18,000 Vacancy Rate (% Rent) 10.00% 120 $1,440 8.30% $125 $1,494 Net Scheduled Income 1,080 $12,960 $1,376 $16,506 Other Income 0 $0 $0 $0 Gross Operating Income 1,080 $12,960 $1,376 $16,506 Operating Expenses Propperty Taxes (annual) $148 $1,776 $148 $1,776 Insurance (annual) $37 $444 $37 $444 Property Mgmt (% Rent) 10.00% $120 $1,440 8.00% $120 $1,440 Repairs (annual) 10.00% $120 $1,440 5.00% $75 $900 CapEx (annual) 5.00% $60 $720 2.50% $38 $450 HOA (annual) $0 $0 $0 $0 Utilities (annual) $0 $0 $0 $0 Landscaping/snow (monthly) $0 $0 $0 $0 Other 1 (annual) $0 $0 $0 $0 Other 2 (monthly) $0 $0 $0 $0 Total Operating Expenses $485 $5,820 $418 $5,010 con opt 1% rule 0.80% 1.00% 50% rule 44.91% 30.35% NOI $7,140 $11,496 Cash Flow annual -$156 $4,200 Cash Flow monthly -$13 $350 Cap Rate 5% 8% CoC 0% 10% Not to say that I would touch this property as it doesn't cash flow with my conservative criteria, but both conservative and optimistic criteria are showing this falling within the 50% rule and under the optimistic scenario (which isn't complete fantasy) the place cash flows.

It's much less stressful go into contract at a price that doesn't have any fantasy element in it.

I think it triggered a fantasy about being able to push a button and ignore certain things in our life. 

So many people pay good money for seminars which fill their heads with fantasy.