I don't know about other areas specifically but my understanding is it's not a repeatable business practice. 

I'm practicing doing rental analysis, but some of the homes on Zillow are priced REALLY low yet look like they're in decent condition.

My DCF assumptions could very well be horrible, just getting practice in. 

*If anyone is willing to do this:I'm trying to practice my analysis skills but need someone to look over them to make sure i'm not screwing anything up.

On a practical level, a custodian just wouldn't allow the investment as the allocation has to then be for something other than dollars.

HiSo I am new to REI and one of the things I am doing is just practicing analysis on loopnet listings.  

What are your best practices?

Since you are not in a position to pull the trigger immediately, I suggest you start practicing evaluating deals so that you learn to do it fast.

And if the funds are held in escrow, then there could be a request or debate later by the tenant to have the funds returned if they failed to exercise the option.On the flip side, you may want to record a memorandum of option and service your option payment to the seller through escrow to cloud the title and make it possibly more professional and binding if you have a large option fee at stake that you've paid the seller and if it gives the seller some peace of mind... but not Necessary...

My realtor says that is common practice with listing agents... is that true?