If that is the case, then the number you can plug into your calculator for your labor is a big fat goose egg...and your profit calculation should reflect that.Therefore, what you are actually trying to add into the equation is an arbitrary number for "opportunity costs". 

As for the time value of money, the bank has that covered in their favor too; in that the majority of my monthly payments in the first 15 year go to them covering their risk quickly, and leaving me with limited principle reduction. 

For one thing you get super fat.  

Either wait until they get motivated by waiting for a price reduction or find one that is motivated that can work with you.

With conventional financing we'll be putting 20% down so our principal reduction as a percentage of our cash investment will be less than 5% according to my spreadsheet, but every bit counts.

Bryan,I think from a cashflow perspective (income reductions that have happened to people in the recession) he was unable to pay them back, at the going rate, so he let them lapse.

The perfect storm you are looking for is a property that was initially over-priced (taking it off the radar of other investors), has had price reductions to get it back in line with market value, and has a 180+ DOM.If you have all cash though... some reason you aren't buying at the Court House?

See if the buyer can bring in additional funds, see if the agent will take a commission reduction and just deal with it.I will be writing up a blog post, I had an appraisal come in 80,000 less then my sales price on a 208,000 sales price.

There are also other factors to your total return, such as the principal reduction in your mortgage from making your monthly payments with rent money and whatever tax benefits you may enjoy.

(Figuring 5-10K) Pull up carpet and refinish Hard Wood Floors, appliances in the kitchen, bathroom spruce up and much wallpaper to remove as well as new paint and some ceiling work in the kitchen and one of the bedroomsWhen I viewed the house during the open house, it was listed for $77500, but price was recently dropped to $74500...A radon reduction system needs to be put in as well as a new sump pump.