On the first item, I was trying to explain that being a real estate agent is not the only way to become a "professional".

You will have vacancies, the carpets will need to be cleaned, walls will need to be painted and different items will have to be repaired and replaced.

*Temperature* aka hot "hot" these goods are would be my biggest concern.Also, it will cost you at least $200 in gas to go pick these items up.

Hi can you tell me where you go to get the following information? A short explanation on each would be appreciated. Thank you Travis

Expired listings/canceled listings.

Absentee owners,

30-60 day late on mortgag...

All the hardware for the doors and cabinets.A few more items but that's the basics.

No active leaks noted yet but they may be a concern. there is an old inground pool that is a liablity but I would plan to rent a jackhammer, push the smashed concrete in, and fill the rest with dirt and throw some seed over the top.Broker did not have access to environmentals or appraisals because the bank bought the property back before foreclosure. broker seems to imply that the concerns are deffered maintenance and estimating capital requirements for roof and windows. broker also implies that seller will not accept less than $800k.cash flow is currently negative due to being poorly managed IMO. the budget includes items like $1,800 for telephone when a phone cost 25-30 per month. the bigger kicker is there is an option to either rent with no utilities included (at rental rates quoted above) or to pay an extra $100 for water and electric included (units have central HVAC included in electric).about 40 units have opted into this program giving a budgeted utility rebill income of around $4,000, the problem is that budgeted electric is over $4,000 and water is just over $4,000, and not only that but in September the electric bill was more than $8,000.

The biggest expense I tend to overlook when plannig a rehab is the hardware (nails, screws and bolts can get up there quick) and other necessry items like caulking and construction adhesive.

In any case, even if you're into risk and future capital gain projections, try to steer clear of real warzones (at least until you build a substantial, diverse portfolio with solid hedging).3) If you're going for capital gain, do your research and find the developing areas.

If you are holding for 5 to 10 years or longer what you put in for resale even though it may be nice will be outdated by the time you go for retail sale.In that case you will need to redo anyways before putting on the market for retail sale so you don't want to spend a bunch of money now.The other item to factor is what do other rentals in the similar rent range offer as far as finishes??

If the area is good the other items can be fixed.If the area is bad it doesn't matter what you do.You could make it the nicest building in a bad area and the tenant calls you get from the pictures once they see the area and other buildings they won't rent from you.Then you are left with the type of tenants living there now.Also is to check on how big of a loan balance is on this property.This landlord might have tons of deferred costs because the debt service is taking all of the cash flow.They can't evict the current tenants because they have no money to rehab the units.You also need to know the eviction process for the area.Even if you get a writ the marshals office could have hundreds to serve that month and a 4 day process takes 6 weeks for them to come out.Even if you account for lost rent when buying to evict these tenants you will not know what kind of damage they will do before you get them out.John do not believe the seller or the brokers agent.This might be a deal but only at the right price.The seller cannot command a premium and dump of problems at the same time (unless the buyer is a sucker or a first time purchaser which sadly sellers hope for).