Tax payers will now be able to dispose of a component of the building when it has been improved.

Don't drop that because if something happens to the interior (flood, fire) you will need that $10K to replace your components.

There is no specific contract involved though most deals will use a P&S contract.Subject-to is also a technique and not a contact.Lease options have a lease component and an option component.

If you have passive income you can buy your time back.You need cash and equity in your property to have the margins to weather temporary downturns or unexpected repairs.

There are unexpected expenses that come up.

I would separate this into two components.

You need enough reserve funds to carry you while you wait to sell completed properties and for unexpected items that crop up during a rehab.You also need to establish relationships with Hard Money rehab lenders to finance your deals.

If you are not counting on that $198 and could handle months with vacancy and other unexpected expenses then it is probably a good idea.

Labor-only bids will also allow you to compare apples to apples on GC bids related to specific tasks.If there are some unexpected repairs uncovered during the inspection, this is your opportunity to ask for concessions from the seller.

From one that speaks to people in foreclosure on regular basis, one repeating emotional trend I see is embarrassment---in general, folks in this position often act too late because they are embarrassed (pride is another good emotional anchor) with admitting failure...Although I don't market to these individuals, I understand the mindset all to well and believe any marketing campaign to these folks should include the following components:- Discretion/Privacy: Give them an opportunity to learn more without revealing themselves initially---offer a white paper or recorded info-message which would allow these distressed homeowners to learn without the need to speak to somebody. - Hope: Too many marketers are appealing to fear---although fear is a compelling emotional trigger, the majority of people don't want to be reminded what they will lose, they want to be reassured that there is a chance for recovery