Cash back cannot be generated from thin air, despite what George Bush and Congress think.There are 3 simple things you could have done (and future newbies should always do) to have prevented this:Due DiligenceDue Diligence Due DiligenceThe only upside of this; (like the upside of the RE and S&L crash of the '80s) is that a lot of us, will make a lot of profit snapping up these deals for twenty five cents on the dollar in the future.

If you are looking to buy, refurbish and then sell you need the buy price to be at least 30% or more.Standard formula says:((ARV * 70%) - (all buying costs + all holding costs + all selling costs + all repair costs + contingency)) is the maximum you can pay and consistently make a profit.

If you really want to maximize your profits per deal do it yourself.

James- I'm not knocking you or the others but have to say that any exit strategy that makes a profit is a good deal.

Two yeras ago I purchased a couple of apartment buildings(two three unit buildings to be exact) and sold them a little more than a year later for a fifty thousand dollar profit.

Then when you have a good one you can sell it or or otherwise make a profit.

If the deal has a $200k profit for you, do you care that it took you two years to find it?

start out maybe with mobile homes Yes, but you might decide the profits there are so great that you never want to "move up".

If your project will not qualify for conventional financing and you have to use a hard money rehab loan you can expect to pay 14%+ in interest as well as several points on the loan and that can eat up a large chunk of your profit.

:help: :help: :help: 485 sq ft Studio in apartment turned condo, in community that rents at around 95% occupancybuilt 1983, updated in 20031/4 mile from Palms CasinoSales price 110K, 10% down required11K cashback at closing, if financing is done through preferred lender (covers 10% downpayment)Management takes care of all internal repairsCurrent tenant renting at 605/month, on lease through 3/1/08Developer offering leaseback of 770/month + no HOA fees or Mgmt fees for 2 years (guaranteed to net profit $90 per month after taxes for 2 years)After 2 years, owner receives whatever property rents for, plus is put in a "Shared Rental Pool": a quarterly check of [Going Rent of all comparable studios in community]X[% Occupied in community]-[losses/improvements of the community].