The damage was in excess of the security deposit.

If tenant looses there job then Section 8 will step in and pay the whole portion.Section 8 is a good tool, but like everything esle, learn to diversify.

Therefore, I would not excessively rehab a property if it is going to be used as a rental, especially in the price range that you're talking about.

They don't really care if it goes into foreclosure because they don't loose anything if they deny the claim.

I had a flex option with a seller bc they wanted a 1k deposit.My buyer was dead set on getting this property, so i put a contract on the property and put the deposit down, and my end buyer signed and faxed back the contracts.Problem is he changed his mind after he signed them, so I never got the deposit and ended up loosing mine.I would like to get my 1k deposit from the guy, but is there anyway?

Thanks all, I'm not looking to commit a fraud I have way too much to loose.

With the current market conditions and the excess inventory of bank owned homes most real cash buyers (the ones that close in 2 days) are looking for 45-50% ARV.

The $1500 operating expenses are things like taxes, insurance, management (even if you do it yourself), maintenance, advertising, office expenses, utilities (even if only during vacancies), legal fees, evictions, damage done by tenants in excess of the security deposit, etc, etc, etc.

Our median housing price took a 34% hit '07-'08 and I wouldnt doubt that we loose anothe 20%+ this year.

I am a wholesaler and spend in excess of 40 hours per week viewing properties and tabulating the other necessary information involved in a wholesale transaction, which would be impossible for an investor with a fulltime job.