The 50% rule of thumb gives a greatly warped sense of reality to me because it COMPLETELY IGNORES 3/4ths of the value centers of real estate.

And don't forget, what ever you set aside must be from the initial discreationary income, it can't be from your "sinking fund" for liabilities.As Americans go in the savings arena, we are woefully behind others.

Your NOI estimates are much higher than reality, though.First deal:$200,000Down: $50,000 (25%)Loan: $150,000Payment: $899.33 ($150K, 6%, 30 years)Rents: $3075Expenses, capital, vacancy: $1537.50 (50% rule)NOI: $1537.50/month, $18,450/yearCash flow: $638/month, $7658/yearCash on cash return: 15%That looks reasonable.The second deal is terrible, assuming its a regular SFR rental.

No matter how good the financials look on paper, the reality will be different and painful.

(now you know why the guru is selling the course)Discouraged over buying the course the person then waits until they have enough money to buy ANOTHER course on a different topic or niche.They find out this is hard as well.They keep going through this cycle over and over again.Hitting it big and making millions is sexy and appealing to people.It makes them dream of a happier life and is easy to sell.Doing the small steps to get there in reality is very boring for many and unappealing.It requires sacrifice and smart work and constant learning.Just think how far people would be if they invested that money they bought all these courses with.People that are great don't need to shove it down your throat.Their track record will stand on it's own.We have had many on here post guru crap and when asked for proof they disappear.

You want great terms as a tenant if you renew on that option spelled out otherwise the landlord will try to hold you hostage and make up the lost income for the past 3 years on the renewal option.It's like chess in that you have to think many moves ahead to make sure you have the long term winning strategy.I agree that the big boys might let a center sit and then lease up very slow at great per sq ft rates or just take write offs with it.With anchored shopping centers you have to watch out for co-tenant clauses.This gives the smaller tenants the right to break the lease and leave if something happens to the anchor.Depending on the design of the center you don't get the benefit of an anchor always.You can be in a center right next to the anchor or you can be in a side strip where 80% of the off traffic won't come to you yet they are still hitting you with a high per sq ft rate.All of these keys become very important when doing anything with retail as they can help you sink or swim.Another aspect is if you have an older anchored shopping center the anchor might be re-imaging and ask for improvements from the landlord that could equal hundreds of thousands or more.

So, at the last minute (4 months after initial application) they told me that they would not lend on my property (my primary residence) unless I finished installation of my kitchen cabinets, kitchen sink and a few other miscellaneous items within 1 week.

Hard to believe this guy is really just giving away properties after sinking almost $400K in it.

Worst I've seen was a house with a sinking foundation... thought it could be fixed, turned out there was a underground stream running through the middle of the house.

I feel if I can show that my number is based on reality, he would be more willing to accept my offer, or counter closer to it, in order to sell quickly.