I pulled out the calculator and added it up.$24,000 for Realtor fee's$14,000 + for Closing Costs$15,000 minimum for upgrades$11,000 minimum for Holding Costs$5,000 for taxes and $1,000 per month thereafter$69,000 in costs[b]$100,000 equity -$69,000 costs$31,000 estimated profit at BEST CASE scenario[/b]I looked up at her and said, "You don't have $100,000 in equity.

I bet they would pay up then....

I bet your personal domain is starting to get more hits due to Biggerpockets.

My wife and I are looking in to buying our first home (we currently live with her father) and have heard that a forclosure would be our best bet for a good deal.

I'd be willing to bet that almost any county in CA has 100s of "deals" like this sitting around for the asking.

Using an NPV (net present value) or IRR (internal rate of return) calculation you can determine this.You can learn this on your own or have someone do it for you...

Mike,The calculations we are taking are as follows:$2200 GMR- 200 est. taxes=$2000 rent.

Hopefully, you can see the pattern and get an idea of how to put the numbers together to do the calculation yourself.$125,000.00Purchase Price$2,500.002.00%Purchase Closing costs$8,750.007.00%Interest$6,000.00Holding costs$30,000.00Rehab costs$18,000.008.00%Sell closing costs$190,250.00Total costs$225,000.00Sell price$34,750.0015.44%Net profitJon

All of these COSTS, however, will get passed back to the tenants in the form of a CAM (Common Area Maintenance) charge that is typically calculated based on the square footage of each tenant's space, according to underlying terms of their lease, and charged, in addition to base rent, monthly.

If you have ever read a standard note and trust deed used by mortgage lenders, I would bet a good attorney could find 20 things many home owners are breaching in their agreement on a regular basis… i.e. parking commercial vehicles, or operating a business from the premises...