. :)Now if it has extra developable land or is close to a corner for commercial development you could extract a very good return out of it changing it's use or parceling out the extra land to different buyers.On the income aspect alone it's a loser.It sounds like the improvements they have done to the property they are trying to get paid for with an inflated price.I saw another 40 unit the other day.An out of the country buyer bought it and rehabbed it and is trying to sell for 3 million.The property is only 40% occupied and the rents are too high.When I see brokers talk investors into this sort of thing it makes me scream........

This may be an odd thought, but for those who do a credit check as part of your background check, couldn't you use the tactic of reporting rent to the credit bureaus as a way of ensuring you get the last month's payment?

We can guess pretty well the inflation (price rising) and interest rate rises that will take place.

For a 50% split, the contractor needs to bring more to the table than just "lower costs on rehab".I would negotiate that he pay teh entire rehab costs as "skin in the game" which would keep him from inflating the costs.

I do not want to do direct mail at this time.I'd be willing to pay for a service, if my odds of obtaining a phone number is higher than 1 out of 3.

It is said that history tends to repeat itself and it is also said that only a fool would make the same mistake twice, so your guess is as good as mine.If we ever have massive RE appreciation rates in the double digits again, I would venture to guess such a scenario would not take place for at least another 2 decades or more, but I was wrong once before (wink, wink)Kidding aside, I believe that once we are over this "correction" and get through the massive amount sof lender owned properties, we will encounter a more steady and reasonable price inflation of RE.

They appear to be at odds with each other to me.

Except for inflation, the cash flow alone from this amount would probably be enough to support most lifestyles; so there’s little need to leverage it or aggressively invest for appreciation.

Rent 1,050 x 12 = 12,600 potential gross income180 yr HOA (sounds low at 15 month)1,973 Taxes5,000 repair year 1 CAPEX5,447 divided by 12 = 453.92 monthlyThe key is the appraisal is most likely inflated along with the rent and the repairs needed are in most cases understated.Underestimated CAPEX could crush your cash flow.Sounds like a deal to look into further.If you have to get a loan the money starts getting really tight on this deal.

Sounds odd, are you even on any lease of sorts?