This is another place where a building inspector could help warn you about any major repairs that may be coming due in the near future (new roof, new heating/AC, etc)Property Filter strategyProperty must be in price ranges of 25000 to 675,000 with the maximum including repairs.Must be maximum 25 years oldMust NOT have nearby UN-clean properties Ex/ non maintained lawn, crumbling roof/structure, torn gates, abandoned cars and possible current crime related houses Must not have major issues or structure issues,examples include an unstable foundation, and big holes in the roof or walls.Seller must be willing to pay 50 percent closing costsMust not have taxes that go over 8250 annually Must have at least 25% in equityMust have the potential rent value of at least 500Must not have more than 2 mortgages on the propertyDocumentation to ask the seller for:Leases/rents for the past year, Tenant applications and screening procedures, tax returns for the past 2 years, also income and expenses for the past year, current rent roll (including unoccupied units, unpaid rents, and concession losses), List of improvements on property in the last 10 years.Documentation of all loans against propertyAvoid all illegal conversions or constructions.Avoid houses with no electrical wiring or AC or plumbing or if these criteria are severely damaged.Property must have cash flow of at least a total of 100 dollars.Plan for Financing At 18 years of age I will start investing in Multi homes with a loan called 203b mortgage (an FHA loan).This will allow me to only put up 3.5 % as a down payment and have a very low interest rate of around 3.5-3.9%.This loan requires me to live in the property for 1 year + though and have mortgage insurance, and so I will live in one unit while my other 1 or 2 units are rented out while I attend college.My down payment and closing costs will be from saved money from jobs in fast food and other work areas from beforehand.I will use 30 year fixed rates.Steps to take in the whole process:Have my attorney write up my contracts beforehand which include ways to exit before closing, financing terms, closing costs being 50/50 split , make sure the sellers future property info is accurate and reliable or else he is accountable and everything else he/she recommends Have my loan prequalified beforehandMake a lowball offerNegotiate until an offer is accepted or you have hit the buying price limit, or the 70% ruleOnce an offer is accepted inspect the house thoroughly by an appraiser and an inspector and take lots of pictures and videosrequest these forms:Leases/rents for the past year, Tenant applications and screening procedures, tax returns for the past 2 years, also income and expenses for the past year, current rent roll (including unoccupied units, unpaid rents, and concession losses), List of improvements on property in the last 10 years.Documentation of all loans against propertyIf the deal is still sweet, go ahead and continue with closing and finalize the deal Hire a property manager with at least 3 recommendations and question him about      these areas of work, also ask for a complete list of all past clients contact numbers.

College (degreed in anything) means they know how learning is structured, prerequisites to learning to build on, communication skills, testing (yes, testing as you can't advance until what is been taught has been determined to have been learned).

would like to know if it is possible to do some preliminary work with an architect to understand the cost of my development for fund raising purposes.How accurate would such an approach be?

that's what I'm hear for ;)5) Local knowledge of value & rehab expenses to reasonably accurately estimate upside to decide if deal was worth it, relative to condition, under tight deadline.6) Live & operate in Oakland, and prepared to negotiate w/ tenants and turn property around7) Affordable & reliable team in place8) Thorough landlording processes9) Time, energy, and expertise to make it a bang-up dealAs far as how long until the negative cash flow stops...?

Anyone have an opinion on which is the best formula to use to accurately to communicate return on investment for single family rehabs...having difficulty understanding application of cash flow formulas to properties that are intended for resale...

My test is scheduled for the first week of August so hopefully soon!

I'm no guru, but I think I have a pretty good grasp on the math....here's my process:The 70% rule of thumb is great for giving any deal the "eyeball test".

I have read tons of posts and blogs bout wholesaling and i'm trying to gain as much knowledge as i can before I secure my first deal but I also don't want to be in the same position i am now a month or two later.But since I'm a newbie one of my major concerns is the ARV and how i can be as accurate as possible without having a background in rehabbing.

If I get licensed in either Virginia or Maryland, getting a DC license only requires a one-evening legal class and then the test, so essentially I just need to pick between VA or MD.

I come across scenario most days and you're research is accurate.