Being new to REI my nerves are starting to hit me a bit on my first fix and flip.

I started listening to BiggerPockets a year or so ago, and finally built up the nerve to take that next and join the community.I've learned a fair amount of real estate from the BiggerPockets podcasts and some independent research, but my actual experience is limited/non-existent.

This is all very exciting and nerve racking.

My recmonedation would be to hold strong and have the nerve to walk away from the deal if need be. 

But you have to be careful because regulators could examine if you had any other duties besides raising capital, and if you don’t it could be found that your compensation was actually a disguised commission, which is illegal.

To state the obvious, both the two surveys taken together and the title description can not be true.As @Eli Molloy says in his post, costly but probably necessary at this point, you should bring in your own surveyor and have him examine what is going on since there is a significant mistake somewhere by someone.

His Schedule E states $37,600 for income.Proforma expenses include a 10% management fee and 8% reserves for repair.Gross income = $37,600Expenses- $24,300NOI= $13,300I am willing to buy at a 10 Cap so I should have offered $133,000.Owner has property listed at $299,000My private money guy will finance 70% of the purchase price.I would want to get this with as little of my own money as possible, so I am asking the seller to finance 25% as a second mtg.Here is where I lost my nerve.

@Shahriar Khan, In theory it could  word for @Eric Gunderson but that qualified person would have to be unrelated and have a profit incentive to buy the property or else it would for sure end up being tagged as a step transaction if examined at all.  

Shouldn’t they be paying for removing tiles and drywall to examine if pipe break is a cause?

That's not how it works.We have to examine if this is a betterment, adaption, or restoration to determine capitalization vs expensing (repairs or maintenance).