Quote from @Keith Barnum: I am not an investor, well, not an investor of real estate property.

Should I take this to small claims court?

In a small effort to be a help here;  my best tip is still to join a local boots on the ground REIA. 

They are your best bet at breakeven or even small cashflow but they will not appreciate near as well as a newer townhome.

On small assets SFR/small MFR and even small MHP, it's somewhat irrelevant what the seller is making/paying.

I target small and midsize companies who care more about cost than larger companies because they may be more willing to work with another housing supplier if they're able to offer lower rates. 

So if this 40k is a very small group and very hands on by the actual Guru who should know thier stuff it could be worth it..

Lets talk :) What type of unit size are you looking for - small duplexes/triplexes or more of large unit multis?

There is a small risk your mortgage could call the note due, however this rarely happens and if it did you could 1.

Since then our leads tripled, and our business doubled in volume at a relatively small cost.