We can certainly point out the lack of cash flow as a buy and hold, but we really can't say it's not a profitable transaction in the big picture.Jon is correct in his assessments, his method is valid, but IMO not the only way to assess the potential of a property.

There is a procedure for assessing this civil penalty.It is possible for some that they make so little (and have no assets) that the IRS determines that the debt is uncollectible.

Weak HOAs are a pain in the rear and can be costly with random assessments.

There is absolutely no issue with the FMR assessment of the property, there is no relationship to rents as that payment is for the debt created out of taking the option.

You can then assess the deal and see how this investor made this money.

One must do a proper evaluation of the property, assess the risk and buy at a % of valuation.

Special assessments from the HOA or some taxing agency.

Additionally I'll go to my county website and look at sales of the house and its assessed value.

The HOA collects dues from all of the condo owners to pay for maintenance and any special assessments required.

Vikram, I would agree with this assessment.