This $100/month is your profit.The 50% rule states that your expenses (#2 above) can *generally* be estimated at half of your total income (#1 above).Of course, this is just a generalization...it could be more or less, but it's a good rule of thumb for doing back-of-the-napkin analysis of a property.

It will be harder, more intense, but my chances are better and I will learn more, faster.

Do you have to pay contractors for an estimate?

Now, that said, the only way that would be the case is if:1) the seller didn't know how to determine the value of his property, and was ripping himself off;2) you had the ability to reduce expenses to a point where very few owners can; or3) the seller is extremely motivated for some reason and is willing to practically give away his property.I'm guessing it's none of these, and that you are actually being too conservative in your pro-forma estimates.

Sorry my Name is Zac :)I just started browsing the site so I haven't really had a chance to see what is available yet, but I am really enjoying everything I have read so far.I'm not sure if there is a local Real Estate Investing Association or not, but I will definately check into it.

I would give them one chance to fix this.

By Nat'l Assoc of Realtors (NAR) standards, which is carried over in many of the state associations, Realtors have to present all legitimate offers.Having said that, you may want to read a bunch in this forum as the chances of your offer being accepted is quite low, though possible.

We don't have a clear estimate on how much yet.So my first question is which seems to have more potential assuming the numbers work on both.Second, are there such things as rehab "grants"?

To determine if it is worth buying you would need to have an estimate of how much the repairs would cost.

Two initial estimates were the same, but actual costs ended up being more than double, and took twice as long.