The properties also appreciate normally over time, so this property 10 years from now will show 10 years of depreciation on it lowering the value even more when in reality the value will most likely have appreciated greatly.I understand that the book value of the property is already entered and is standard, but it is failing miserably to give a true and accurate snapshot of the company's health.  

However, when it is true for such a wide range of years why would it not continue to be true going forward if using a long duration?

So if it seems likely to be true, then tell him that and then tell him you will amend the lease to allow them to stay if they pay the additional water amount of $25/mo or whatever.I guess the other question is would you have rented to him if he'd have had a girlfriend with 2 kids?

This is for half of a duplex.Asking price: $75,000Offer: $75,000 (Yes, I offered what they were asking because there was a lot of competition and their asking price was way under market value)ARV: ~$110,000Down payment: $15,000Rehab: $5,000Closing Costs: $2,000Total out of pocket: $22,000Rent: $1,000Total monthly income: $1,000Expenses:Mortgage: $313 ($60k @ 4.75%)Taxes: $100Insurance: $80Flood ins: $0HOA: $0Maintenance: $100 (10%)Capex: $100 (10%)Management: 0$ (I will self-manage)Vacancy Allowance: $50 (5%)Total Expenses: $749NOI = income - expenses = $1,000 - $749 = $251/month cash flow.Wealth gain = ARV - mortgage balance - down payment - rehab - closing costs = $110k - $60k - $15k - $5k - $2k = $28,000CoC = 13.7%So, to me this seems like a really good deal and I'm worried I'm missing something because it almost seems too good to be true.

Remember, just because she/he says its 100-110k.. doesn't mean it's true..

I am ideally looking for a tried and true contractor who has experience working with fix and flip investors and can complete renovations reasonably quickly.  

A true mentor will not fall on your laps.

that sounds too good to be true frankly.. caution unless this is a personal friend or family member if its a private lender you met on line.. good chance you will lose any up front money you give them

Yes this is true. 

Is this true?