I have helped many buyers purchase REO'S in the DFW, so I know how most banks operate.

You could probably do either yourself; however, be sure that you have a good lawyer set up your operating agreement.

Especially in a time of crisis, giving your customers (users) information is the best way to keep people from getting angry at you.That said, I did happen to get 3 really nasty emails from people who insulted and virtually spit on us, but their hate is a sign that we're making an impact.

Lynn,The title of your post says "their" as in agents in the plural sense.Never in my post did I say anything about you.I posted real world experience on how things operate.There is a real world difference of how things "should" operate and how actually things "do" operate.Buyers can say how unfair buying REO's is and they get beat out etc. and cry foul OR accept that the world is unfair and figure out how to get their share of the deals.If you buy multiple properties it helps versus a one off.An REO broker is not going to want to tick off an investor that buys 20 properties a year from them just to give you a deal where you buy one time.

Robert,They are typically subject to the state's home rule as you are operating in their state.

For this purpose, just divide the annual net operating income (50% of gross rent) by .09 as the high end, divide NOI by .11 as the lower end of your potential range.Also, ask an agent to do a BPO/CMA to provide a point of reference.

Then divide this actual cashflow into the "all-in" number to get your COC return.And for the cash scenario, you already mentioned that you cashflow is $5400, so your cash on cash return is:$5400 / $53,050 = ~10% (not 20%)I think the part you're missing is that the $5400 (in this example) is your "Net Operating Income," not your "cashflow."

This unit will rent for $650 per month.With $700 total in operating expenses and $2,100 per month coming in, this house will be generating $17k net income this year.

I think every new'b at some point thought just like that then eventually found it was a dead end and a major headache, including me.In contrast, there is a guy in Indy running an operation that buys 50 packs of these types of SFRs refurbishes them and sells them for 40-50k, and he is helping improve the area while profiting.

You'll have to be very dependent on the "turn-key" company to handle the day to day operations, so you want to make sure they have truly built a full-service company and that they are planning on sticking around.