Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.Consider checking out HUD homes for small multi's owner occupied gets first crack.

Lots of sociopathic personalities out there,, however at the end of the day buying rehabbers is not a highly complicated business as you state LOL, I must have the same algorithm hard wired in my brain along with my lie detector eye balls, I certainly got my share of liars and embellishments, but none were funded, maybe it's my cynical nature, maybe a bit of human intelligence gathering from my Army intelligence days, could be the old examiner days that sound off alarms, might be prudent lending practices that made me so lucky, maybe all of it together just didn't give those types a snowball's chance on a hot stove of getting past me, since it never happened with my money or my client's money.

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.Consider checking out HUD homes for small multi's owner occupied gets first crack.You might consider Niche or Specialized Housing like student housing.

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.You might consider Niche or Specialized Housing like student housing.

@James Mudd Using simple rule of thumb analysis, tells you the cap rate would be closer to 7.35% with both sides rented. 2 x $950 = 1900/month x 12 = 22,800 Gross Rents / a reasonable expectation of expenses of 50% = 11,400/155k = 7.35% Cap Rate You will get the accurate numbers if you follow @Mehran Kamari's advice, but that cap rate is way over optimistic.

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.You might consider Niche or Specialized Housing like student housing.

When tagging type @ and the first 3 letters of their name there will be a choice list at the bottom of the window click the correct on that will outline the name in blue.Check out the Start Here page http://www.biggerpockets.com/starthereLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.Consider checking out HUD homes for small multi's owner occupied gets first crack.You might consider Niche or Specialized Housing like student housing.

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.Consider checking out HUD homes for small multi's owner occupied gets first crack.You might consider Niche or Specialized Housing like student housing, vacation rentals and military housing.

The value of a $5k HVAC unit put in 3 years ago when it was a personal residence is not depreciated, as Dave mentioned, however, 3 years later it would not be the truest reflection of value if you were to add $5k, so adjusting the value as you would for depreciation gives a more accurate valuation for the basis.

That is not my main concern, my focal point is building a serious buyers list first, gathering information on the buyer needs, processing them adequately making sure they have skin in the game and delivering on what they want.