Here's one in particular that I've run some numbers on:10 units, $585 per month per unit in rentsale price $795kAccording to the ad:Scheduled Gross Income:$71,000 (my caculator must be broken 585 x 10 x 12 = 70,200)Net Operating Income:$54,060NOI seems a little inflated if you ask me (but you probably didn't :lol: )If you put 10% down ($79.5k) your loan amount will be $715.5kAt 8% the payment will be $5250/month.

I'm sure many people have done this, but I'll bet that most of them don't fully understand why they are doing it, and many of them are losing money without realizing it.What's USUALLY in the back of their mind when they do this, but is often subconcious, is that they are COUNTING on the house to appreciate and/or rental rates to go up.

Not only are you dealing with normal rehab issues for a major project, but then you are also betting on the come.

Remember, each state establishes it's own reg and exemptions.In the end, I guesss your best bet would be to seek legal advise before pursuing PL for funding your deals.

However I bet money most of them are just looking for a cheap house and aren't investors.I dunno.

I remember reading in someone (maybe Groucho Marx's) autobiography, about getting stock tips from a shoeshine boy and an elevator operator prior to the 1929 stock market crash.

Mike where are you getting 275.00 per month operating expenses?

Other operating expenses to consider: a.

on the subject of non competes...i have a possibilty to have a free mentor for the whole summer by working with with my roomates dad who is a real estate investor. his only condition is that i sign a non compete. if i am interested in buying property and investing in the same area he operates in in the future could the non compete stop me from doing so?

If you are building a sizable operation, and money is no object, The Mortgage Office is excellent.