Sometimes the contractor will come in and tell you a low bid, but then once they open things up tell you you need to spend more to get it corrected because that was not in the bid.

Even though the house was originally bought with cash, this is still considered a 1st position lien, correct?

They generally don't want unpermitted issues on the books any more than you do.Better to do this ASAP and not mess with it, you want to show that you are serious about getting this corrected.

You are correct, the only way to use hard money is to have them cover the purchase and the rehab.

Verifying rental history often takes a long time tocomplete due to applicants not giving us correct landlord contact information, landlords not returning our callsor refusing to give us any details.We also deal with applicants trying to have family or friends pose as theirlandlords.

If you are correct, I think it's far more than just the multifamily market that will be in trouble.

While I’ve gained more experience in real estate over the past couple of years, I still want to ensure I’m handling this situation correctly.

For an off-market deal, the broker doesn’t necessarily have a fiduciary duty to me if I’m the buyer, correct?

John, not sure if you are familiar with the current STR situation in Huntsville, but the city has shut down STRs that are not zoned correctly and also not permitted. 

I am currently thinking that the ARV of 160-165 is accurate and I will be able to cash out refi and have no money into the deal but you are correct it will be a cash flow negative.