The way I learned it is that the 30% you subtract right off the bat does indeed take closing and holding costs into consideration.I was taught that 10% = soft costs and 20% = profit.

Your rental in Edison as long as it is rented to well underwritten tenants should serve you well.

End-game possibilities to (a) put on the market to sell after 4 months refurb – could be worth $575K ARV and if sold quickly yield me a 30%+ cash on cash return, or (b) if soft buyer’s market then put out to rent, with projected 9% cap rate.My main questions:If I put in 90% of equity, what % of profits would be competitive?

Is it just plywood that is rotted out to where the floor is soft or will fall through if you step on it?

The problem is getting into the game with only enough in the bank for soft costs and reserves.Thanks for your input.

The podcast was #29: http://www.biggerpockets.com/renewsblog/2013/08/01/bp-podcast-029-peer-to-peer-fix-hold-dawn/ @Yang Xiao It was 174500, 3080 sq ft, rent ready with window treatments, towel holders, and landscaping.

I made a soft/rough offer and feeling nervous about it and wanted to see if anyone had any insight.It was difficult to pull comps because of the uniqueness of the property but the closest I could find were 3 properties that sold in the last month and were all 6-families that sold for roughly $600k all of which had 3br/3br/2br type setup.The subject property has 5 two bedrooms, 2 studio's and the commercial unit.

Plus there are lots of soft skills in RE so very hard to train that.

Also, there are a couple of soft spots in the floors and damage.

Subtract from that number the cost to build, including soft costs.