But what I am realizing is that is a lot more to in then as someone starting out sees.

Once he realizes that you will not pay for profits that the owner claimed to the IRS did not exist then work out a compromise.

I also want to realize the dream of buying something that needed a lot of work, so that I can add my own special touches.

Similar to how some find residential deals and others drive right by the same property but never realize what they missed.

The professionals have told you the down falls and you realize these properties are being sold for a reason.

Mike,You do realize that this is part 2 of a two part response---please see my previous post for my rationalization---it has been quite some time since we have seen double digit inflation (early 80's), but that was the prevailing trend at the time (rents raise with inflation).

I realize this will vary for different areas, mine is TN if that helps.

It's hard enough to make it work on a 30 yr or 20 yr term.Again, I fully realize how counter-intuitive this is to a newbie, because it was to me.

One thing that too many people have learned the hard way, and I have come to realize as a fact since reading this forum is that you have to calculate 45 to 50 percent of your gross rent as expenses.

Many of these newbies will buy rental properties and rapidly realize that they are in over their head.