And that 3-6 months turned into 2yrs.I had to find a new way to skin the cat and quick, the only answer I found was partnerships.

(I hear about how it is in CA and the northeast and my skin crawls.)

If we dont they end up hanging tiger skin blankets and all the other really nice bed spread, sheets etc.

Like any low income area you must be tough skinned.

You're right Brian, the more you know the easier things get.Yes, there are contractors out there that will try to skin a newbie, you need to know and trust them, you'd only do this type of thing with those you can really work with.

I would have to say talk with a CPA on this for your specific circumstances.If you are purchasing all cash with no financing, IMO your biggest objective is to cover your butt since your the one with all the skin in the game therefore have everything to lose.

However, I know a lot of people will want to see some skin in the game, so I am thinking of asking for 90% and I will put the other 10% into the project, likely $10k on this deal.

You'll need some skin in the game.What makes the most sense in my opinion is this: You offer him $380k and attempt a 203k loan.

I have a client I've done some deals with (he flips houses) who has done very well and is on board with me getting more skin in the game.

Secondly, 90 days of holding costs along with that time frame provides a window of time where repairs and improvements might be made to justify a new and higher price, the new owner also has more skin in the game.