@Michael Vu - try this exercise to change your viewpoint on the deal. 

By nature I'm not a systematic thinker, but I know I perform at my highest and enjoy having systems and structure.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

For instance, most of the time my properties have always been much better performers in the maintenance department than the numbers at BP would lead me to believe. 

Here's a look at the numbers outlining the sustaining performance of the property: Monthly rent: $950PM fee: 9%Mortgage amount (taxes/insurance escrowed): $535Reserve for expenses: 15% = $142.50 (a little lower than usual since we took care of all cap ex items in the rehab)Total monthly/annual cash flow: $187/$2,244Annual ROI: 18.13% We had some private investors in on this deal as well, and while we were not able to give them the bonus this time around we still gave a solid 10% guaranteed APR (~3% cash-on-cash over the 3.5 months of this project).

You buy an undervalued house that needs rehab, perform rehab, rent it, refi and repeat. 

Just don't expect it to perform as well as your calculator says.One more piece of advice...if you are investing in C- / D areas and you install air conditioning, make sure you chain the condenser down.

Does your state and contract allow you to sue for specific performance?

But we’re starting with the 552 markets in the U.S. that have more than 25,000 occupied residences.In this study, you’ll gain unique insight into:The top cities for cash flow over the past 10 yearsThe top appreciation markets over the last 10 yearsThe top performing “hybrid” (cash flow + appreciation) markets over the past decadeHow to know when you’ve found a great marketTips for conducting your own researchCheck it out and let us know what you think!

I've found this exercise forces you to sit down and write our your thoughts.