Have you personally verified the rents by calling for-rent signs on similar properties and looking on craigslist?

. / $4,166.67Annual debt service “DS”Revenues:Monthly AnnuallyRental Income$935$11,220.00 (RI)Vacancy @ 8% ($74.80)($897.60)Net Rental Income $860.20$10,322.40 NRI)Operating Expenses:Property Tax- 1800 (this is being challenged currently, but no ruling at this time)Insurance- 1000 (estimate, I will get a quote on this for sure.)Maintenance- 1200 (Estimate)Utilities- 800 (Estimate)Advertising- 100 (Estimate)Total Operating Expenses (*Very Estimated*) = $4900 (TOE)Net Operating IncomeNRI-TOE= NOI$10,322.40-$4900= $5422.50 (NOI)Total Cash FlowNOI- DS= TCF$5.422.40-$4,166.67= $1,255.73Return on InvestmentTCF/ TCO= ROI$1,255.73/ $5,000= .2511 (25.11%)Cash on Cash (Considering- Down Payment, Upfront Repairs, Closing Costs)TCF/ TCO (W/repairs and closing costs)$1,255.73/ $6,500 ($5,000 DP + $0 Initial Repairs + $1,500 Closing Cost) = .1923 (19.23%)My thoughts regarding this deal: I think the asking price is a little high for the property considering it’s age, condition (off of visual inspection from the street level only), location, what limited comps I could find.

A buddy submits 10 offers at a time and then does his initial inspection after he hears something positive back from the bank.

Nathan - initially I was going to try to short sale this property.

About a month later the same exact quit claim deed (indymac to deutsche) was filed for a SECOND time by another law firm, different than the one that initially filed the QCD from bank to bank the first time.

I'd assume 5-10% under the last list price, but I can't verify that without an agent.

The point is you cannot pay for what you cannot verify and must price in the risk.Example seller shows a building getting 3,000 a month in rents.Shows his deposits and says the tenants pay cash and to TRUST HIM.It may or may not be true but if you can't verify on your own that it's true you must price it like it is not.You always have to dig down and see what the sellers are hiding and the TRUE reasons for selling.What they tell you on the phone most of the time is what they want you to believe.You have to find out the real reason and decide if you want to take on that particular problem or not.

Now I have another course to choose from out of three from the initial package, but I'm thinking two subjects are enough for me for now.

by the way my initial exit strategy will be to rent for cash flow.

Once you understand it, you will be better educated to perform the strategy.How to make offers for your buy and hold - For quick calculations, if the rent value is $1000 monthly, you can afford to pay $50,000 (2%) for that rental (including acquisition and any needed upfront repairs to get it to renting condition initially).