You are going to end up out your money on this deal as soon as the bank discovers the note holder has moved and signed an agreement with you to sell.

I’ve found success by networking at local meetups, connecting with real estate agents, and exploring online platforms to discover these opportunities.

@Penny PengBig piece missing here - what is the best component ?

Keep in mind this is sponsor-provided material, not something that the site discovered through research, nor verified. 

We have a buyer for the property and now it has been discovered that the corporation paperwork was submitted to the state as a charitable contribution even though we are listed as a not for profit organization and have been listed this way for well over 40 years.

Did they discover something that was going to potentially cost more than they thought?

I plan to shop around more but I’m surprised that there aren’t more funding options in California with the recent popularity of ADUs help with the leverage component. 

This is a BUSINESS with a real estate component, NOT a real estate INVESTMENT.  

The contingency reserve may be released only if required, necessary, and unforeseen repairs or deficiencies are discovered during the renovation.

We just discovered a crack in the concrete slab foundation that is a borderline major problem:- It is a vertical crack about 1/8 inch wide that is at least 9ft long, which is causing a 3/4 inch drop in the flooring and some evidence of old (luckily) limited moisture and termite intrusion. - BUT, it also appears old and probably a symptom of the original house settling.