But if you redevelop 5 or 10, then the market will recognize that the boundary has moved.

On the cash basis, you deduct all expenses in the year they are paid and recognize revenue in the year it is received.

Those, that recognized the opportunity, made a fortune. 

However, we recognize that there is some interest rate risk after year 5 - but, given our long term view on interest rates, we are pretty comfortable with it.  

Smart attorneys (99.7%) recognize that I the guy that makes it possible for then to get paid.

While most of the investors I know (a) don't fully understand IRR and (b) recognize that it is based on key assumptions - if it is provided by a trusted party and the assumptions are spelled out -- they know that the IRR number is one of a couple key indicators that provides good context around the deal potential.

The advantage is that owners are motivated, most of the time, not always.Yes, the law recognizes that motivation and vulnerability and has "wrapped it up" to protect lenders and consumer/owners.

Here are the numbers for this home 3bed/1bath with nice shed, fenced in yard:purchase price $60,000 CASH (seller pays closing)square feet 1047repairs: floors, HVAC, cabinets, painting ~$15,000holding costs while rehab is completed: 500Total investment: $75,500monthly rent: 800   -    yearly rent: 9600vacancy: 800Maintenance and CapX fund: $1,600/annualtaxes: $1435/annualinsurance: $900/annual (is 75$/month a reasonable assumption)I will manage the propertyI am looking at annual cash inflow of $4,600I recognize this return on equity is only %5.7. 

I want to get a better understanding of how I can spot/recognize trends and/or developing trends.Also, does anyone know an efficient way to get foreclosure rate numbers on a mpnthly basis specific to my state, or better yet my city.Shortsale.

Same appraiser-Some come out very fair and others so low you don't recognize the comps he's using.