I think the trustee sale buyer just didn't do his homework.

so anyone that is going to pay out 949k to buy it to make 81,300 a year or 6775 a month to hold a loan payment of almost a million dollars. their cap rate would be 949,000/81,300=11.6 cap rate or roi you would need to ask what they want to make back each year or what type of return on investment they are wanting if they want a 20% return on investment and they are looking to pay 1 million dollars(for easy math) to get 20% return on investment they would have to be making 200k yearly or about 16k a month after all the bills are paid. so if your investor is looking for a return on investment with in that percentage rate then its a good deal for him if he is looking for a higher cap rate then no it wouldnt be good. besides how are you going to be paid on this deal?

If you truly can, I'd build a business around that, put systems in place, hire employees and just crank them out.I'm guessing you're paying (purchase plus rehab) something closer to $40K for this property and doing "Flip This House" math to get to the $50K profit.

I suggest that you do your homework and educate yourself before you use someone's contract that you don't fully understand.

@Michael Stole great math :) but I did another (built in 1955).

Just make sure the numbers make sense and you do your homework on tenant screening!

Who knows what will happen to taxes in the future.As far as renting your existing residence vs. taking the loss now, evaluate the math.

It is being supplied to sort of check his math.

You should do your homework before you proceed any further.

My math: 1200*.5=600 (50% rule) 600*12=7200 7200/115,000(total cost)= .062 or a 6.2% cap rate Not the greatest for building a buy and hold portfolio.