Mr. P, you really need to understand the deal before you make a statement that you dont like it. We know that they purchased the property which have 32 existing units that are currently rented, immediatly cash flow, it probably covers the debt service and the operating of the property. 2nd the deal included 2 parcels of undeveloped land, which were zoned for development. I belive 1 parcel is approved for 14 units and the other parcel is approved for 32 units. So do the math on that 46 new units @ an average price of $400,000.00 and I am being conservative with the way that market is, where the demand far outlast the supply. So that is 18,400,00 is gross revenue. I dont know anything about construction but I would imagine that the profit margin would be somewhere around 25% and thats if you did not own your own construction company so you have a 4,600,000 profit which will be realized in approximatly 36 months. Then you have the existing unit which you were right about, they will probably keep the units rented and remodel 1 or 2 at a time and then put them on the market as completed and dependinng on how quick they sell they would just keep selling if the properties were not selling as quickly as they would like they could always rent out the remodeled units I believe remodel units in the property rent out for $2700 - $2900 with a covered boat slip. So the purchase price was 11,000,000.00 they can recoup that in just the investment in the existing units and the development of the outparcel is pure profit. Oh and you fail to discuss the fact that they purchased a marina which has 42 boat slips, which currently provide a revenue stream. If you do some DD you will find out that most marinas in new orleans are full and their is a need for boat slips, so they can incrase the rents to market and/sell each boat slip which my research show boat slips would generate sales in the $40-60K range in that area of Louisiana. So I dont believe that all the revenue streams were discussed but this acquisition is a cash cow. Good reading