With the numbers provided, the conservative CoC ROI is (500*12) / 24000 = 25%.Depending on the price of the property and your refi lender's ARV, you would likely be getting 25%-30% equity in the home for a steeply discounted price of 24k.

Even as GC doing my own work, it still cost a fortune...Materials will still cost what they cost, there are few discounts for tradesmen any more.

On the other side of the spectrum, I leased a 6 bedroom home I owned in a very marginal neighborhood to a husband and wife who rent rooms to mothers and children escaping from abusive relationships who have money but don’t want to stay at a homeless shelter but want counseling and companionship.  

You will learn how create a discount cash flow analysis, calculate NPV,  IRR, Operating Expense ratio, Profitability Index etc.

Hey guys, I'm trying to understand the mind set of the "flipper" and how this could be a opportunity to buy if they are willing to discount.

These are 400+ unit developments, in the $30million+ range yet the structure of the deal eliminates the majority of the 'headaches', other than calling to curse out the sponsor every once in a while to keep them on their toes.Real estate is a businesses where I have found that there is almost always an increasing marginal return to economies of scale.

(my best homework at the time, I thought that gave me a great margin and enough room to cope with any potential hidden issues).

@Brandon Elliott, hello fellow Boulder County agent :)Downturns are awesome for buying investments because things are discounted. 

You'd likely take a discount on the price, but in my opinion, it's well worth it.  

As an employee, I get first access to our deals and even benefited from an employee discount program, which allowed me to get an even better deal.