Purchase price, inspected condition, and unknown expenses (if you cannot get financials from the vendor) are the things that will hurt you far more.

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

I could never buy the "car I've always wanted" and keep letting some unknown idiot drive off in it over and over..... the stress would offset any tiny profit.

The main one being you know to a large extent when someone is living there the water is running properly which is a big unknown when you purchase a vacant foreclosure.The next post will focus on the rehab budget we put together for the project and the draw schedule we have with our hard money lender.

@Igor Gjorgjiev Definitely a lot of unknowns at this point. 

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

I prefer a known risk vs. an unknown and if they don't like it they can just leave. 

I wouldn't forget about RE investing simply because there are a couple unknowns and obstacles.