Here is what the prospective property for the case study is like:Large commercial Big Box retail property (its a BIG place) Located in the suburbs of Des Moines, Iowa Des Moines is one of the most up and coming business hubs in the country and is bustling with growth.Former American TV and Appliance storeThey are the current owner and went out of business in this location about 5 months agoDirectly off the interstate (I 80 35)*** FUN FACT - Des Moines is the only place in the nation where Interstates 80 and 35 conjoin ***Directly across from a business parkIncludes a hotel, restaurants, office space, a movie theatre, grocery store, barsNear residential neighborhoods as well (adjacent to my house)Here are some of the numbers on the property:Asking Price: $7.2 MPrevious Sales Info: Sold in 2013 for $5,310,500146,003 Total Square Foot$49/SF10.21 AcresYear Built: 2000Current Assessed Value: $9.2 MCurrent Tax Information: $371,976 annual payment (EXPENSE)Water Payment Information:Summer Months: $3000 (EXPENSE)Winter Months: $400 (EXPENSE)TOTAL EXPENSE UTILITIES: $450,890AVERAGE RETAIL RENT - DES MOINES METRO: $12.32 / Square Foot / YearPROSPECTIVE PROPERTY AVERAGE ESTIMATED RENT: $1,798,756 / YearESTIMATED CAP RATE: 25%Based on previous sales price during 2013 of $5,310,500I wanted to first of all make sure I calculated these numbers correctly and wanted to get more opinions on what these numbers are like for a property like this and if anyone here has had any experience with a similar property.Thanks for all your help BP!

I enjoy watching the Montelongo's tv show.  

I was watching AAN auctios in Florida on tv last night.

The TV shows make it look easy, so you get new folks buying at numbers that don't make sense.The hedge funds have slowed down, but they still buy a lot of stuff and there's no competing with them.I've actually noticed more deals coming my way this year, not less, but people are peddling thinner margins.

David, good point and my preference is to press with the rehab project as planned.

so if you're truly looking at it as a business model you need to factor in the cost savings or "rent you're paying to yourself" - usually while fixing up an otherwise unrentable house (it's amazing what we'll put up with when we're remodeling our own places isn't it).If you ever watch real poker players not the tv actor types they never keep all their chips on the table.  

Link to the press release is below.

So, if the unit is 10 years of age, it's not going to go over night and a seller will be hard pressed to replace one or give a credit.

Anyhow, keep pressing for as much info as you can during your due diligence.  

It's not a trick question but it is a leading question, as they say on TV :)Basically, if you're not a real estate appraiser and/or a real estate agent and/or contractor with lots of experience then you might not know.