Lesson learned, ALWAYS assume re-performers not going to perform.Second question, in NC if the property is worth 50K and the debt (in this case a loan modification) is for $29K do I only get the property if it goes for less than $29K? 

Loan modification seems to be, according to much of what I've read, a good way to get a positive ROI.How does someone like myself, who is new to the business, go about performing this part of DD?

First MortgageThe current total unpaid principal is 112,374.80Interest at 2.00000: 393.05Deferred Pursuant to Loan Modification:117,254.00and other escrow stuff total: 230,777.19Second Mortgage16,756.11 my mother in law said that there is no interest on this loan.

For instance, there could be a great chance for an amenable loan modification or a deed in lieu that could occur even in a long foreclosure state that would alleviate the inherent risk of a long, drawn out foreclosure.

We wanted to do a modification of the BRRRR strategy, where we buy, flip, rent, refinance, sell after a year and be flipping another while the rental term is being completed.   

I use the same lease I do for my rentals (with some slight modifications - mostly regarding shared space access and utilities) but the key difference is term.

Does that still necessitate a mutual release be signed?

He then sends me a text telling me that its not suitable unless I make a long list of modifications.

@Elizabeth Zieman Thanks for the thoughts on the building code modification.

Unfortunately there are factors you can't pickup in spreadsheets...thats why they call it Risk...and yes your risk tolerance is higher then mine or others.And the whole thing about starting from a poor upbringing...well...welcome to the club...thats 90% of us here, no need to mention that.I just think option #2 is very risk, thats all...not that it won't come true with some modifications.