During Buyer's title search, it was identified that there is no Certificate of Occupancy (CofO) for the home confirming it is a legal 2 family. 

How good is her contract? 

Then they get something under contract, have a buyer all set up but no money!

We also are very verse on the Property Code Laws of what legally we must do and what is just good business.So @Ian McClure to answer your question, it would depend on how the new tenant was on boarded and what kind of business the owner runs concerning his property

Your contract also wants to require an Estoppel Letter from all tenants.

@Mitch Holmes With $400K-$500K in cash and your contracting experience, start with smaller flips in the $300K-$400K range to minimize risk and build experience.

Spend your time on your contracts, insurance, and operations.Contracts-  copy, borrow from someone else as a starting point.  

Hard money is not cash and should NEVER be written on a contract as cash.

I just got off the phone with a law firm doing the foreclosure legal work for a bank.

We have our first duplex in contract now but the dream would be for my partner and I to leave our W-2 too!