If you look at that data, adjusted for inflation, you will notice an interesting result.

The latest news about the nation’s foreclosure crises is that there is going to be a rise in the amount of foreclosures around the nation.

Realty Trac is pretty well known for their inflated number but they are fairly open about their methodology.

Assets can be adjusted to a quick sale price as well and that should be reasonable, not a drastic reduction based on some unknow basis or wild guess.Mark to market is a HUD program/requirement of bringing HUD owned properties at a market value for sale to private investors as is not an accounting issue.Jason had a good point too, as to the purpose of the statement, but that does not mean using cost, plus improvements less depreciation andusing market values if inflated to overstate your financial position.

. :)Now if it has extra developable land or is close to a corner for commercial development you could extract a very good return out of it changing it's use or parceling out the extra land to different buyers.On the income aspect alone it's a loser.It sounds like the improvements they have done to the property they are trying to get paid for with an inflated price.I saw another 40 unit the other day.An out of the country buyer bought it and rehabbed it and is trying to sell for 3 million.The property is only 40% occupied and the rents are too high.When I see brokers talk investors into this sort of thing it makes me scream........

Germain rulings if rates rise appreciably.

For a 50% split, the contractor needs to bring more to the table than just "lower costs on rehab".I would negotiate that he pay teh entire rehab costs as "skin in the game" which would keep him from inflating the costs.

It is said that history tends to repeat itself and it is also said that only a fool would make the same mistake twice, so your guess is as good as mine.If we ever have massive RE appreciation rates in the double digits again, I would venture to guess such a scenario would not take place for at least another 2 decades or more, but I was wrong once before (wink, wink)Kidding aside, I believe that once we are over this "correction" and get through the massive amount sof lender owned properties, we will encounter a more steady and reasonable price inflation of RE.

Except for inflation, the cash flow alone from this amount would probably be enough to support most lifestyles; so there’s little need to leverage it or aggressively invest for appreciation.

Rent 1,050 x 12 = 12,600 potential gross income180 yr HOA (sounds low at 15 month)1,973 Taxes5,000 repair year 1 CAPEX5,447 divided by 12 = 453.92 monthlyThe key is the appraisal is most likely inflated along with the rent and the repairs needed are in most cases understated.Underestimated CAPEX could crush your cash flow.Sounds like a deal to look into further.If you have to get a loan the money starts getting really tight on this deal.