The price/sf method is less accurate in my opinion.I will factor in short sales and REOs but won't use them as a direct comparable, unless it's been totally renovated.I use pendings and actives to either push listing price higher or drive it lower.

Its not a horrible deal at $95K, especially if it only needs the minimal fix up he is speaking of, but sellers are usually not 100% accurate on needed repairs (especially if he is a long distance owner).

We try to keep the Sold/Available status accurate by following up on deals on day 7, day 26, day 45, day 75, day 120, and day 160.

Assuming your rent assumptions are accurate, assuming there is no major differed maintenance issues, and assuming there is nothing out of the ordinary that would impact your NOI (such that your expenses were much more than 50%), this deal sounds great from a purely financial perspective.Obviously, there are other considerations (location, management, etc), but again, just looking at the numbers, it looks good on paper.

In order to get an accurate picture you need to calculate additional costs into the ownership of the note.

I send out accurate BPO's, with 'ballpark' repair figures (no, I'm not a contractor).

Knowing the area and comps along with accurate repair estimates is key.

I guess I already know the answer and the seller would have to be willing to sign a DOV which would not be accurate and that is certainly a legal issue but I am hoping for a loophole.

Siteworthchecker must be pretty accurate.

-UweSorry Uwe, but your numbers aren't accurate in this case.