My biggest concern other than the closing costs was that if an FHA buyer tried to come buy it my understanding is they would need to wait 90 days from when I bought it and I think it would only take about a month to fix it up.

I'm also told there are already a few buyers interested.

They neglected to mention that SROs (single room occupancy, aka lodging house, aka rooming house) also means likely very high maintenance, necessitating supervision and hands-on management.The property had just dropped out of contract because the first buyers couldn’t get bank financing.

The “tales” of nothing down/seller subordinates “down payment” done successfully almost always hide the most important information - that the buyer either provided additional collateral (such as real property owned “free and clear”, a certificate of deposit in an amount greater than the down payment required, or the buyer is financially strong enough that part of the financing was in effect a personal loan or line of credit. 

Buyers receive a letter requesting the information from the sale but they are under no obligation to respond.

And how does the buyer know that they're getting a good deal (ie, how do they know you don't have a 500 score)? 

Direct buyer at trustee sale auctions in Phoenix, AZ How did you finance this deal?

Did you ever follow up with the buyer to see what they ended doing here?

I would just be cautious about taking on such a high cost basis this late in the cycle because when we see the next buyer’s market it will probably cut into your equity.

My husband and I currently reside in Mount Pleasant, South Carolina.