The laws are changing quick, very quick, it's a tough business model to build a business around.

Marc,Some leg work is involved in making this model and just like other models used in economics this just shows you the broad picture of what is going on.First, I determine my comparables that are in close relations to my property.

$9000 out of pocket, plenty of work overseeing the move and repair, and $500 a month until they default in two years which you state is your business model.

Keep in mind that some banks (Fannie Mae is most notable) will not allow you to resell the property for more than 20% what you purchased it for for at least 90 days, so figure that into your model as well when wholesaling REOs...

There are a ton of thread on myfico.com about this where people obsess about optimizing their scores and figuring out the models that change all of the time.

He then asked if I could be at the house in the at 8.30 in the morning (3 days before end of lease) so i could let the delivery guys in to deliver more mattresses.

How do you typically account for these renovations costs in your financial model?

Originally posted by JoeinOH:To bad for him it didn't turn out so well.I’m not sure I agree with the quote Joe, but I can see the script now...Greedy landlord wronged by young neighborhood thug.Bitter and obsessed, landlord vows revenge.Meets and comes to understand youth and family at court appearances.Suggests alternative sentencing to sympathetic judge and takes youth under his wing.Landlord grows to learn the issues with growing up uneducated in a poor community and without a dad.Befriends youth and family, selflessly becomes a role model, and inspires youth to excel in school and break the chain of poverty, further setting examples for others.No Nobel Prize at the end....I don’t know the record for votes Joe, but I hope you break it.

Maybe I'm wrong here, but it seems the business model may have been to reach a certain level of user activity and then monetize the site.

My two main models are SFD flips and buy and holds, (SFD's, multi's, apts.).