But you're correct, Sherry, that you can deduct the expenses you incur in running your business.

I have not yet put an offer in on this property, but I am using it to create a hypothetical scenario to see if my numbers are correct.

About 80 percent of the time the property looked good in the picture but when you got there in a matter of a few days to a week the place was trashed.You have to remember for the small commission the REO brokers are making on these it is "cash for trash".Small lots,old houses,very high taxes,and aging city sewer system that is falling apart.Many of these houses the foundation does waves,electrical and plumbing is stripped,mold,etc.Smart local investors are buying outside Atlanta in the surrounding counties where they spend a little more but nicer areas and higher rents and lower property taxes.

Steve's post correcting the numbers is dead on.Why in the world would you want to settle for a 7% return?

Say no and move on to someone you are more comfortable with.I am not sure if this is correct, I believe what Nathan is saying applies to owner-occupied properties with no more than four units.http://www.housingrights.org/askhri/faqs.htm#holl

would be correct.

Im pretty sure I know the answer, but if I did get no for an answer, we'd still be on for the original accepted offer, correct?

If it's a mistake on the part of the Escrow officer, just get a corrected/amended HUD one rushed through and then get it to the underwriter.

It does take a little time and money and potentially a little drywall repair if your contractor can't take off the old trim correctly.

The books are good for motivation (rah rah) and extremely thin on actual principles and methods to follow through on the hype.Edit...I was attempting to correct a typo above and the site is acting strangely.