The number one mistake that I saw buyers making was jumping right into negotiating (and not very good negotiating at that) without first spending the time to build rapport.

I took the next 5 months to tackle everything myself spending approximately 17k in supplies and tools + paying a plumber and roofer 4k total to fix those issues.

I just meant to say that it's our next goal to build that up, having just gone on a spending spree on fixing up both properties in a short period of time.

How many times can you spend $1500 to get an 88% return?

At one time, I told people to spend money on a skip trace so they could file the in personam QT lawsuit (the one where you can served lawsuit papers on all defendants) and avoid the expense of the in rem QT lawsuit (the one where you need a GAL).

Expect to spend another ~$8K for that.If you are planning to close all-cash and bring enough cash with you for operating expenses and rehab, you are looking at a minimum capital raise of about $3M and that is for a cheap 32 unit.

But on this specific guy, I jumped on a call to explore the program and it was a high pressure sales call, it did not feel organic, not trustworthy and certainly did not feel the right fit.Why would someone spend 10k on a so niched-down space of real estate when they can get someone for the same amount to teach him/her everything?  

I agree that is will be a gamble as to how well it will do.Also, ask the owner if they will entertain partial owner financing to keep from dragging family and friends into this risky business venture.Maybe even rent from owner for a year with right to sublease to see how it goes before committing to a purchase.

Run your numbers based on youre required return given what youre likely to have to spend and the amount of headache, risk, and work you have to do.

That's understood.Page 19, Two faces of Debt: Federal Reserve Bank of Chicago - "banks exchange a borrower's "promissory note" or "security" for a check that other banks can deposit" (so the note is funding a check) same page states, "...the borrower can spend the deposit acquired by borrowing"...