They are also a for profit enterprise and make more money if they charge you for replacement cost vs actual cash value.The reality is you are way more likely to have a partial loss than a total loss.

What I do is, I get their budget and tell them what can be done with that budget, sort of reverse engineer the budget and bring them to reality, I believe this is the best way a win-win situation can work.

The concepts are simple, and I grasp them easily, but the reality of implementing this is daunting.

Many investors starting off do not realize the reality of the impact of any fees against their bottom line until it’s too late.How it affects your financing To me this is the biggest hurdle for most lenders to overcome.

Reality probably looks different.

From a couple of comments in this thread, I question if you are as close to the reality of qualifying for conventional financing and ready to buy as you might think right now.

Although the rent potential is a consideration, it is not reality. 

I use Shawn Viguerie @253 reality.

@Daniel Dietz - not to be pessimistic, but I have done a lot of analyzing recently on MF deals, and have found a lot of inconsistencies in what the owner says the numbers are, and what they actually are in this place called "reality"......If it looks thin, either do enough homework where you know you can fatten it up, or kill the deal.

That's my understanding of how the math works, but in reality I still have my $20,000 in the house and I'm just pulling out the equity.