@James Wise hit the nail on the head w/ the largest red flag- previous owner not paying taxes in a rough area- he probably did the minimum or less for maintenance (could be a reason 2 people arent paying).

Nail down the appraisal.

hit the nail on the head.  

I'll post up the numbers tomorrow after my walk through and I nail down the exact rehab costs.I typically don't flip, although I have a couple times.  

@Dev Horn Good points, I will think it over this weekend and nail it down.  

I am currently working with Alex now nailing down my second property.

@Ryland Taniguchi  little different story than your first post.. you made it sound like you were forced to do a JV other wise get nailed for unconceivable profit or equity skimming.Either way sounds like a big project hope it all works out

You hit the nail on the head. 

I don't see Hamilton or KWC being effected by anything short an economic disaster and a complete reccesion.P.S Roy if you're ever in my end of Ontario I would love to grab a lunch or coffee and debate some real estate,I always like seeing things in different light.You may disagree, but no real estate prices in any market - whether it be local such as Hamilton or Waterloo, regional (Niagara Peninsula), provincial, or national - cannot continue to diverge from the underlaying economy in that market (specifically household income) indefinitely.I'll poke the bear a little more and say there is no "ideal CAP rate" when you are acquiring ... the only time we look at CAP rates (or PE ratios in other business) is when we pan to sell as it lest us know where we can price the business.I'm guessing your young enough to have yet to operate through a serious downturn ... that's when I'll be interested in that coffee ;-)As @Roy N. points out, and hit the nail right on the head. 

So trying to nail down target markets to flip in and have a question.What defines a good (profitable) flipping market.