Sounds like they didn't set proper expectations with the seller, didn't uncover all hidden objections, or didn't have a solid contract in the first place.

. 😊  I've been thinking more about your question based on my LA experience, and some great advice I've read from three days of lurking here on BP from some RE veterans, based less on my fantasy but more on what I would do with your idea to start out at 1.5 and move into 3-5 million houses.First, it's all going to come down to your goals, here's a quote about that from Don Konipol (from the forum post https://www.biggerpockets.com/forums/519/topics/1150499-the-...Quote from @Don Konipol:IMO, the financial reasons for investing in real estate include 1- Asset Preservation2- Increase Wealth3- Current Income4- Tax MinimizationWhile these four are not mutually exclusive, the more you benefit in one area the less will be the benefit in the others, given normal market conditions, unless you uncover something everyone else has missed.

After that, you may be subject to other forms of inspections that uncover more.

its so nice to have investors especially from out of state help you to do you first deal. its so rewarding on both sides.

(trying to think of a polite word for the not so nice word I am thinking).

Here's what would be great to share:The unexpected: Did you uncover any surprising elements during the flip?

Conduct due diligence to uncover any potential legal liabilities.Overleveraging: Excessive debt or aggressive financing structures may leave little room for unforeseen expenses or market downturns.

That is the not so nice city at the base of the hill, right where you come off the 210 freeway. 

Are those insurance rates equally expensive/becoming uncovered?

Since you asked so "nicely":Why does everyone want to chase strangers – and ignore their own personal network?