How hot & cold air could come out of the same ducts at the same time was a total mystery to me.

(or testing the originals)Age of appliancesType of furnace (forced air pref)Central airFoundation and joistsWater damage in basementNumber of roof layers and age of top layerSize of lotSq footageNumber of bathsType and condition of flooringLight fixtures Ok...

Part of my Army days was as an Air Traffic Controller.

Most of it is fine, except for the gentlemen telling me to give the investor fix up costs that I plucked out of the air.

Breath of fresh air, thanks Josh.Now back to "discreet assignment fee"

(Sorry I went so long around the bush, but we are here now)The difference between investing and speculation has more to do with the degree of control or management over the proposed transaction, than gambling by chance.Assume I am entering into a purchase to sell a property that is very unique, like a burm home with only wood heat and no air conditioning and it is located in northern Missouri in a rural area on 10 acres.Now, let's assume that the newest memeber of BP is also interested in this same property.

All the Home Depot's around me give me (Air Force vet) a 10% discount.

If i could owner finance i think selling would be a ton easier while still getting a qualified buyer (maybe someone putting a heavy down but just lost a house to foreclosure etc).Assuming this situation, (out of thin air)Reo purchased for 40k, put 5k into repairs (lets say carpet paint etc).

So they ended up paying about $50k more, for a house one block away that did not have central AC, and that wasn't a fresh rehab (and the property they bought didn't even have forced air heat - it has radiators - a lot more pricey to add central AC to that)!

The building is in good condition.Lot Dimensions: 24.9x77.73Building Size: 5 stories plus basementProperty type: C7-Walkup over 6 families and storesNo. of Units: 9 (8 residential/ 1 Retail-bar)Gross Sq.Ft: 8,588Lot Size: 1,919Zoning: C1-8AAllowable FAR: 7.52 (currently 4.59)Additional FAR: 7,350 Air space rightsYear built: 1920 (major renovations and upgrades 1988)RE Taxes: $64,622Operating Income--------------------------------------------------------Unit|Tenant Status| Size| Monthly|Annual--------------------------------------------------------Basement (business)1919Ground (business)1919$19,991$239,8912Emonth to month2bdrm$3500$42,0002Wmonth to monthstudio$1800$33,6003ERent controlled1bdrm$140$16803WRent Stablized1bdrm$1140$13,6804Emonth to month2bdrm$3200$38,4004Wmonth to month1bdrm$2400$28,8805ERent controlled1bdrm$157$1,8845Wmonth to month1bdrm$2800$33,600Gross Operating income: $32,168 monthly and $433,615 annuallyExpenses-------------------------------------------------------Expense|Cost-------------------------------------------------------Taxes$64,662water$2,500fuel$10,000electric$2,500super$2,400maintenance$7,000insurance$7,350management (3%)$13,006Total expenses:$109,878Net operating income: $323,737The building apartments do need cosmetic and asthetic upgrades, I am told by the realtor that the upgrades run in total between 30k - 50k per apartment.current cap rate based on latest accepted offer: 5.9%least cap rate I am willing to accept to make an offer: 10%Real estate owner is also selling the bar that consumes the ground floor and basement of the building.