I think the agent simply took market rent, applied them to all units, and used one of the R&M rules to come up with his number2. property manager listed no rent income for 6 months straight and suddenly for the very last month on paper there was an income of about 2800 dollars. this made me doubt if the entire income and expense reporting was accurate3. owner did not provide tax or insurance numbers - the listing agent estimated them...I also heard from the selling agent that one of the bigger units will be vacant from next month, due to eviction of tenants from rent delinquencies The owner is out of state and seems clueless on the operations of this building.

Example (I'll round numbers for ease); Buy property for 250K100K down from SDIRAs, 150K Non-recourse loan @ 5.75%/20 years (60% financed)30K Income, 13K Operating Expenses, 9K Interest, "Net Income" for taxes of 8K (before depreciation which would be 12K on whole thing).........................................................Does this the we would take 60% of the 8K "Net Income" or $4800 and then take off 60% of the 12K depreciation or $7200 to have a negative net income of $2400?

They can put all kinds of things below the line that would normally be considered operating expenses.  

@Cindy Spoo  I have quick question, is there a way to collect referral fees and be inactive so you do not have to keep an active license and keep up with the continuing educational classes etc...? 

@Keith FowlerIf you will be doing work on the properties and or managing them then a ROBS 401k may work as long as the real estate operating company requirements are satisfied.

@Brian Phelt It seems like there's a few fine lines with some of the different wholesaling techniques around operating without a license.

(Tom) Waggoner continued to expand his ranching interests.

They are one of the main components in the changes we see in the housing industry, and will continue to be for years to come.

Needless to say I did not want to insult the owner, and let them know I wasn't able to make an offer.Fast forward a few weeks and I get a call stating that another flipper was offering them a low number, and continuously calling.

Cashflow is negative, but Total ROI is 25-30%, meaning this would be an appreciation play and would provide a nice roof over my head and some gratification of owning a nice home.My guess is that it's somewhere in between these two scenarios.I'd still continue investing in future buy & hold deals, but this would mean I'd probably have to take a year off to rebuild my savings.