And given the expense numbers being so very low compared to "income", I would say some of the expenses are being understated or ignored.

I think the "Rich Dad" teaching Robert how actually to do real estate is understated and should be a larger focus of the book.

While the owner being sick is the underlying cause of why the properties ended up in receivership, it understates the process which brought them there - e.g. bankruptcy, litigation, condemnation, etc.

Understating expenses, and overstating rent roll and occupancy, by lots.

The entry amount to be paid for the collateral goes to the balance of the loan and allowed costs of collection under state law.

Dodd-Frank may not require a servicer, regardless, I suggest you turn the deal over to a servicer ASAP, as you have servicing issues of notice under state law.

Ibrahim, you can expect income to be overstated and expenses to be understated.

@James WiseI don't have any MLS worthy comparables for the subject property but for the recently sold properties on Zillow, Trulia, Redfin, and Realtor.com, I calculated an understated ARV of $150,000.

Be careful of relying on pro formas from the turnkeys, they generally understate repairs and capex, and as soon as you buy the house the taxes are more than likely going to rise significantly.

Repairs and cap ex expense are often understated when taking into account the long term expenses and income associated with rentals.