Different deals would call for different structures, pay outs etc....Have workers lined up ready to perform rehab - they've been trained what preferences we have (flooring, colors, hardware etc...)Rehab, stage, sell.  

OR . . . you can work with a hard money lender that has been through all of that, knows what they are doing, and could use your funds to reimburse their loan money disbursed, and see if they will part with their performing mortgage notes.

While the real money to be made is on the upside I think a 10 cap on current performance is still steep unless there are stellar seller financing terms.

You should ultimately calculate all your figures and purchase price based on actual performance of the asset in the last 12 months. 

Jessica HoodHi Jessica,It really depends on the scope of work to be performed.  

I wouldn't try to go by a " square footage cost" to try to reverse engineer how the guy performed his work.

We would also have an in-house pharmacy and the property has a rehab center that would create additional income.Negotiating quick cash buy (15-35 days) for short term inspection period in order to create motivation to act now.It's appraised value is 2MM.Looking for short term equity partner/s where there would be an agreed buyout at the end of 16-24 months with no pre-payment penalties should we buy out sooner. 12 month deferred payment.The property would be for a Behavioral Wellness Center that would cater to our clients suffering from clinical depression and would be a short term (6-12months) to long term (18-24 months stay) recovery period.Clients would be required to be medically stable and able to perform their own activity of daily living (shower, groom and feed).Staffing would include RNs, LVNs, Support staff (Techs, kitchen staff, Nursing Assistants, HR, Education, Administration, Contract Counselors, Addiction Counselors, Technical support, Groundsmen,...)Would you be interested in this deal?

Then, I was thinking to myself:  "would they have been as understanding if I couldn't perform to the contract?  

I've played with (enter fake name here), (enter real name here, but really I just went to their concert and got his autograph), and I also performed with the (enter another famous name that everyone has performed with that cannot be verified) band.

I do not like properties where someone buys and then quickly slams tenants with specials in to get up occupancy and tries to sell as fully performing.