Realistically, because things will go wrong, a 10% profit is a better estimate.

I can't believe how many people under estimate our current crisis.

So far the expense hasn't been anything major, but the amount of time and effort that has gone into plumbing in this house certainly has exceeded my estimates.

If the agent is desperate for a sale you're more likely to make this work than if there are other potential buyers (where the agent has a chance to make the full 6%).Can't hurt to ask, though...

This $100/month is your profit.The 50% rule states that your expenses (#2 above) can *generally* be estimated at half of your total income (#1 above).Of course, this is just a generalization...it could be more or less, but it's a good rule of thumb for doing back-of-the-napkin analysis of a property.

It will be harder, more intense, but my chances are better and I will learn more, faster.

Do you have to pay contractors for an estimate?

Now, that said, the only way that would be the case is if:1) the seller didn't know how to determine the value of his property, and was ripping himself off;2) you had the ability to reduce expenses to a point where very few owners can; or3) the seller is extremely motivated for some reason and is willing to practically give away his property.I'm guessing it's none of these, and that you are actually being too conservative in your pro-forma estimates.

Sorry my Name is Zac :)I just started browsing the site so I haven't really had a chance to see what is available yet, but I am really enjoying everything I have read so far.I'm not sure if there is a local Real Estate Investing Association or not, but I will definately check into it.

I would give them one chance to fix this.