This is not a HOA due on the specific home, this is a deficiency at the community level. 1.

What I have discovered is that my clients have thousand of REOs nationally and through my relationships at the Asset Manager level I have access or the ability to look at them all.

And it was all this crazy lending that drove up prices to the bubble levels.

it's an investment with a projected return and risk level.

There are three levels of it, and the prices are not bad for what you are getting.

And that process absolutely includes the expected return, the level of risk and the fact that no one can predict how any property will perform compared to another.

That one side will have to go up at least 4 inches to be level with everything else and it might mean tearing out the bathroom and redoing the whole furnace and everything from what a contractor was saying.

Home is nice, 2700 sq. foot mid-upper market.

. / $4,166.67Annual debt service “DS”Revenues:Monthly AnnuallyRental Income$935$11,220.00 (RI)Vacancy @ 8% ($74.80)($897.60)Net Rental Income $860.20$10,322.40 NRI)Operating Expenses:Property Tax- 1800 (this is being challenged currently, but no ruling at this time)Insurance- 1000 (estimate, I will get a quote on this for sure.)Maintenance- 1200 (Estimate)Utilities- 800 (Estimate)Advertising- 100 (Estimate)Total Operating Expenses (*Very Estimated*) = $4900 (TOE)Net Operating IncomeNRI-TOE= NOI$10,322.40-$4900= $5422.50 (NOI)Total Cash FlowNOI- DS= TCF$5.422.40-$4,166.67= $1,255.73Return on InvestmentTCF/ TCO= ROI$1,255.73/ $5,000= .2511 (25.11%)Cash on Cash (Considering- Down Payment, Upfront Repairs, Closing Costs)TCF/ TCO (W/repairs and closing costs)$1,255.73/ $6,500 ($5,000 DP + $0 Initial Repairs + $1,500 Closing Cost) = .1923 (19.23%)My thoughts regarding this deal: I think the asking price is a little high for the property considering it’s age, condition (off of visual inspection from the street level only), location, what limited comps I could find.

So alot more free-wheeling at the local bank level.