Will you run a declining balance in the second year like a mortgage, in that case as the principal goes down the return goes up.  

Unfortunately I just do not have the time to do that so I have to decline.

So, if you take double declining balance depreciation and hold some time and then sell, the chickens come home to roost. 

Another offer came in for 250 (from another investor my agent works with) and she declined and decided to pull it off the market.

I declined insurance due to quotes in the $1700 range.

Asking was 70k, i offered 61k. it was a private seller, estate situation.they countered high, i declined, i didn't hear back for 2 weeks and then they accepted it.it needs work, exterior and electrical will be the majority of it.

I was just saying that with the short term run up I would not buy looking for big gains in the medium term.I would buy here regardless of what things were doing right now if you have a long term time frame, like 10+ years or if you are doing fix and flips in the ~4-8 month time frame.The former will pretty much wait out any short term decline and in the later as long as you buy with a realistic cushion and based on real numbers, not assuming the place will be worth 1-2% more than you paid just by owning it a few months, you will be fine.The people that think they will buy a place now at retail and live in it then sell or refi in 1-3 years are the ones that could get burned badly.For example I have some friends that were moving a couple times during the run up last time.  

The houses he is buying are turnkey in a declining neighborhood.

Holly depends on the area of Price Hill but for the most part it is steadily declining in my opinion.  

@Richard York, a more formal, properly drafted agreement likely would have said that the investor has the option of being liquidated at any time after the 36th month of the hold period, provided that the cost to refinance the property to facilitate the distribution is deducted from the investor's proceeds, and provided that it's actually possible to obtain cash-out refinancing (if the value declined or was flat it wouldn't be possible).It would also provide for a mechanism in which to establish value.