The appraisal will also have a section where the income approach can be used to set value, but comps are usually used for setting value for a loan.Now, for determining value as an INVESTMENT - I suggest you want your investments to produce income, so you should be looking at income produced.

BP nation - I need some ideas for non-internet marketing...

Do you think I should still have a contractor give me an estimate before I try to sell a wholesale deal or would that book give me the insight to at least get a semi estimate of repairs to be able to determine the (Mao)maximum allowable offer for the potential buyer?

I'm struggling to determine what acceptable CAP rates (CAP Rate= NOI/Purchase Price) are for particular areas.

You really need to know the area, population movements and other factors in buying, determining the hold period and expenses, disposition and expected future price points.

If you want to get direct with sellers you need to do mailers, internet, and a whole host of other strategies to get in front of them.

As a ball park I am using the following formula to determine the buy price

Get your credit cleaned up, get some cash saved up, then think about buying a residence if that's what you want.If you're determined, I'd be upfront and offer the asking price (or a bit more), no money down.

I must get written bids by a licensed contractor that must be submitted to the inspection department for approval to determine repair costs.

And start internet marketing for that area.Beyond that I am clueless.