What am I missing here?? 

If you hear that and wonder "How the heck am I supposed to find properties that cash flow well then?"

I've bought properties that had structural problems that revealed themselves after I bought (which I had to fix)--and having gone through that process, I can tell you that I would never knowingly buy a property with structural issues (except in rare circumstances outlined below).So, why am I willing to buy a property that's on the brink of condemnation, but I won't buy a property with significant structural issues?

If I let the first lender start the title search am I bound to go through with the mortgage with this lender? 

Am I completely wrong on this? 

Am I understanding this right? 

Am I taking this step too early?

Ben, So what I am hearing you saying is you had a property in LA that was worth $755,000 and after the sale of that property, you cleared $366,000 which you turned and bought a property in Houston for $400,000 by using the $366,000 and adding $34,000 more in personal funds. am I correct in my understanding?

Am I that far off?

What  am I not seeing?