So, also I am not investing in Non-Performing notes and would like to grow more in this market. 

@German Hernandez it all depends on your goals and how the investment is performing.

Background, credit and all other checks are being performed now for the daughter, will know the results soon.Thank you

I feel that my formal education has helped me in many ways such as understanding how to read and analyze financial statements, performing cash flow projections, and understanding metrics that affect risk and returns.

First, see Sch-C vs Sch-E.Second, the appraisal is not performed based upon EITHER schedule.However, the GSI-Expense = projected NOI, times 0.37 is actual NOI and that has to cover the mortgage+interest, insurance and taxes.The high vacancy rate (1.00 - 0.37 = 0.63) is a killer and usually, you would take such a loss ONLY because you would be year long resident AND love the life style - - aka it's typically a bad 'investment' and you're making this choice for OTHER than financial gain.

Don't baby sit and set the bar where you EXPECT the tenants to perform. 

In those instances, your new floor will usually not perform well over time because it doesn't have a good base. 

He breaks down in great detail the things you want to think about and the analysis you need to perform.  

He advised me he wants all his property to bring in more than $700 a month and this one is under-performing.  

I've come to the conclusion that 'wholesalers' should always be ready, willing, and able to perform on the terms of the contract.