Paint colors, flooring, price per sqft labour and materials, etc...

And that lien is a huge title problem waiting to happen for anybody who thinks it disappeared when an accounting decision was made.It's a tough situation for the borrower. 

I am going to try and remote self manage and see how that goes but if it is tough I may use them for my next purchases.   

Here in GA it is a cash sale at the courthouse steps.With all the guru's and TV shows pushing "flip this house" and " a million mistakes were made and we still made money " newbies feel like they can't lose trying their hand at this stuff.In the entry levels flips new investors are overbidding due to lack of experience, construction materials are rising in cost, and contractors are in big demand so they are gouging on what they charge.

However, the flooring was just into the beginning stages of depreciation.In 2019 I did some rehabbing and replaced all flooring with waterproof LVP throughout having paid about $3586 for materials and installation.

We've issued non renewal notices at times when rents were materially lower than market.

California can be a tough market, but it's also lucrative.

The following year would be considered passive, so even if you materially participated, it would still be passive the following year and you cannot offset your W2.Is this accurate? 

Yeah that is the tough part, this deal is in a market I haven't been in before.

It is very tough to finance these because most properties and borrowers do not qualify for the financing criterias on a competitive CRE loan.