But a big (and prob. most commonly overlooked) component of competently analyzing the #'s and dealing in reality, is knowing about how much an entire rehab project is really going to cost you (and then don't forget to add 15% to that). 

Generally, I buy properties that needs a fix-up, then rent them out.I didn't know about component-izing  my rehabs, so in the beginning I get a GC doing everything, combined all the costs, and book it as one large building improvement account. 

@Tikii WilliamsIf the vendor owns the house free and clear, there is nothing to "sub to", so that is not an option.Vender financing is an option, but you need to be solving a problem for the Vendor - if the house were very run down, the market not moving at all, or it is more important for the vendor to maximize their return than to have the funds all at once.Even when you identify a problem to be solved, there is typically a large educational component to demonstrate to the Vender they will make more money and, potentially pay less tax, if they carry a mortgage on the house.

@Kelly CarterIt's hard to speak on CapEx because I don't know how much money you are putting into the renovations and what the lifespan of the rest of the main components are.

Anish you bought B class for C class prices  what we have here is flip flopped especially the MOrris stuff.but yes PM is critical component.. 

If anyone is masochistic enough to be looking for an exercise or case study in this, look up the Federal Realty Investment Trust project at Assembly Square in Somerville MA:  a former Ford plant turned barren wasteland with (over time) multiple environmental matters on site to clean up.   

So, making and having good men standing beside you is very important and will be a component of your success.  

Some of the major components of the wealthy mindset is about creating wealth and passive income by accumulating assets and creating systems that can run without the person drectly needing to be there to do the work.

the 18 year cycle is financial based, there is another component that is space based and runs 10 years.I would like to remind you that the stated goal of the fed via artificially low interest rates is to "boost asset prices and encourage equities investment"So have asset prices been boosted yet?

@Wayne Brooks, Nope,  You were right on about the real estate component.