Major flaw is the pool which the lining needs to be replaced and equipment serviced.

Major flaw is the pool which the lining needs to be replaced and equipment serviced. 

To structure seller financing, it is always best to begin with a conversation to uncover the seller's goals.  

@William Nelson Great advice, I wish I had someone to tell me these things years ago.Bottom line for me, is take a break from looking at props and focus in your business plan and vision as you’ve mentioned.I know my business plans will change, but the most important exercise was the act of writing it down as opposed to just having the plan in your head.Not just the plan, but I also found myself researching local real estate attorneys, real estate agents, insurance agents etc. and everyone who may be involved in my business.I’ve uncovered a ton of things in my local area, which I hope will help going forward.Lot of great stuff.

In the example I just gave, I was able to walk through the potential investor's calculations to show his flaws (there was more than one). 

I'm learning as I go and uncovering nuanced info and approaches layer by layer.

The prop tax alone at 1.1% (I use a conservative 1.25% in my projections but am using low value to depict the operating expense flaw) at a $400K assessed value would be $4,400. 

So I want to break down the deal below, and get a few of your suggestions on what our next move should be AFTER the rehab.Found the deal at an auctionIt is a single family home, 2935 sq ft, 4 bd, 3 bth in and absolutely FANTASTIC neighborhoodPaid $150,000 for the housePaid about $6500 to closeAppraisal came back at $187,500 and it hasn't been updated since the 90s as far as inside appearanceNo major flaws, mostly cleanup, cosmetics and updatingFactored in $30,000 for the repair costs (roof, flooring, paint, kitchen/bathroom updates)We put $30,000 down for down payment$120,000 will be financed at 4.5% PITI is $1030 (after remodel PITI will go down as we are switching to a landlord policy)After remodel will rent between $1500-$1700, maybe more but doing a little digging on corporate rentalsWorst case will cashflow right around $300 per month ARV will be in the range of $250,000 on the low end.  

Extreme weather or the uncovering of more problems is fair, whereas lack of organization and communication certainly is not.

In purchasing around 25 SFHs and lots in NC, my attorney has never uncovered anything that made me walk away.