The IRR is an annual return which is comprised of the annual cash flows (9-10% per year) plus two equity components, debt pay-down and appreciation.

Jamie,you have some details correct and some mixed up a bit - let me help.There are 4 components to a property - let us use a single family home as an example.There is the house - bricks and sticks.There is the deed - who owns the propertyThere is usually a note and mortgage - the Note is the promise, the Mortgage Secures the promiseThere is occupancy.Most people think these are all in the same and sometimes they are - in our instance, they are not. 123 Main St is the physical address.

But then UBIT may not apply on rental component of the income.

I would see if the agency can give a breakdown(unlikely) or break it down by component or number of liabilities you do have.

A key component of flipping is being able to find distressed properties and I know inventory of distressed properties is evaporating.

Forget the NNN component for a second.

I think the owners are trying to price it high because of all of the work they put into it.With the owner financing component and the prospect of being able to maybe put very little money down, do you see any light in this tunnel?

YouTube is a great resource for videos on sheetrock patching, replacing tank components for toilets, wax rings, replacing broken faucets, fixing drains, etc.Those are just a few things that come to mind for me that are fairly simple.

Or two different components?

.), age of various components, and overall age of property.Will be entertaining to hear if you get your $1,500!