You said you went through a turnkey place, but did you actually inspect them yourself or did you rely on the inspector they picked? 

I recommend talking with your lender PRIOR to making the offer if you're relying heavily on this financing plan. 

I rely on the Fair Market rents on the HUD website, www.HUDuser.org and my rents are almost always above the median rents on that site. 

For those who are new investors and rely on these forums for guidance there's a few things that jump out and should be clarified:1.

Rely on industry acknowledged experts for advice.

Happily take the appreciation if it happens but don't want to rely on it too much.

Your lender will probably require a certain amount of cash reserves so it would be wise also to look into lenders who might lend to you -- and get to know their requirements.Ultimately your expansion ability is going to hinge on your ability to borrow money, which to a part relies on how much down payment you can get.Just my 2 cents.

This may have been the case prior to online real estate platforms, but today buyer's see properties as soon as they hit the market and do not rely upon agents to make the buyer aware of a property that fits their requirements.

Plus, you can easily keep an eye on your investment without needing to rely entirely on a property manager.Make Money When You Buy: This is key.

Explain that you acted in good faith, relying on their inspection and approval.- Consider reimbursing the new owner: While not ideal, paying the $6k might be the most cost-effective solution to protect the contractor's license and your reputation.- Learn for future projects: This experience underscores the importance of thorough inspections, even on recently installed systems.- Check statute of limitations: Depending on your state, there might be a time limit on claims related to construction defects.As a hard money lender specializing in fix and flip deals, I've seen similar situations arise.