It also depend --if it includes a business --such as liquor store, c store, several rentals -- a hotel --each will have different clauses --start with LOI --and have an attorney draw up actual contract --must have draft prepared based on buyer and seller understanding - also need to involve buyer's accountant --for break down of components for maximum tax benefits for new buyer --such as RE, Equipment, Inventory and good will.

How much of an average flipper's or developer's ROE is really return on EFFORT for the E component?

First, on a probable MH purchase I discovered back taxes for this years and last, totaling $996.

Both of these components of a lease option give the buyer, called a tenant buyer in lease options, the ability to buy their own home albeit, they are actually leasing the home for a period of time and then closing when they qualify for a mortgage.However the biggest advantage is that the tenant buyer is actually on track to buy the house they want instead of "throwing all their monthly rent away" with nothing in return.

Although estimating the cost of rehabs can be tough for a new investor, estimating the rehab costs on a total gut is easier than one that only requires the repairing and upgrading of certain components, imo.With the latter you have to try and figure out does it need upgrading/painting, should I replace it or just leave it alone?

I've followed along on the blogs but just discovered this part of the website.

Cost segregation studies do not have to be expensive and can result in significant tax benefits and cash flow improvement in the early years of depreciation.Separating various components is no longer allowed, but cost segregation is.

If not, and discovered during an insurance audit, they will basically charge us the cost of the premium for coverage.

Finances/compliance/salesAs you can see each position has a sales component.

i've been trying to tell you this isn't a cashflowing property..if there isn't much upside on the appreciation (which i really don't see, as it looks like you're getting into the market after other investors have discovered your boom), then there's no point in taking on a break even or negative cash flowing property..you are seriously underestimating expenses...