Any transaction that wasn't truly arms length should be adjusted if not entirely omitted.

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookTo find out about an area go to IREM.org search for ARM certified property managers.

Thinking of refi with 5 yr ARM.  

When you are looking at the report you should only consider properties that sold with a General Warranty deed, "GW", as those will be your most likely suspects for arms-length transactions.

Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.To find out about an area go to IREM.org search for ARM certified property managers.

It is an interest only 10 year arm.

When evaluating we target a DCR 1.6%+, Cash on cash 12%+ and a CAP of 8%+You can go to IREM.org and call several ARM certified property managers and ask about  the city what parts they like and dislike and why.

The current owner address is in the same neighborhood, is a self-employed professional, who has had past state and federal tax lien issues in the triple digits.

Brand New 3 Bedroom , 2 Bathroom, 2 Car Garage, 1445 SQ Feet under air Purchase Price is $131,900 Seller paying All Closing Cost , Plus 1 Year full Warranty...Rent in the Area ranges from 1,000 - 1,500 per month, based on comps this property will rent for $1200 - $1300 Per MonthBased on a 5 year arm I expect my Interest rate to be 4.5% as a investor20% Down Payment $26380 , Mortgage amount $105,520.00Payment                             Principal                                     Interest534.65$ 138.95$ 395.70HOA $42 Per monthInsurance $50 Per MonthTaxes = $150 per monthTotal PITI & HOA = 776.65 & Misc 23.35 = $800 per month Positive cash flow per month $400.00 = $4800 per Year or +/- 18% return Cash Flow + Principal = 539 per month = $6468 or +/- 24 % Return on CashCash Flow + Principal + Appreciation of 3% = Total of $10468 or  +/- 38%Additional I believe over the 5 year rent and hold the additional rent , plus real appreciation of 5-6% will cover all selling cost , offering a 5 year return of 190% ...OK, Let me have it

Two banks are telling me that I will have to take out a portfolio loan and the options are 3/1 vs 5/1 ARM loans.