If your inspection fails you can walk away right? 

If you can't fathom how it could fail you'll walk right into failure.

Always do the math analysis on a prospective property and try to look at it of at least have a clause in the sales contract that allows you some time (about 15 days) to make a detailed inspection and possibly walk out of the deal without a penalty that will hurt you too much.The thing you also should do in the beginning is to have a Team put together that typically have an Attorney, real estate Agents, a CPA (or accountants), Inspectors, general Contractors, and Handymen.  

There's a flipping book or two out there that walk you through repair costs... you can study those.  

Asbestos tiling in the basement...Part of me likes it, but the other part of me says holy crap don't walk run away!

A new real estate investor walks into my place of business and I missed the opportunity to connect.

Hey BP,This one is a little off the wall, but just curious if anyone else has dealt with this already.Just when you thought you'd seen a few things, you walk into a garage that sunk 2-4"...it's bizarre!

@David Torres nails it... as soon as somebody walks down the hallway and sees that bathroom, they will (fine.. may*) be instantly turned off, and think in their heads they have to gut the entire thing.

No / late rent = an eviction notice and a walk through without exception.

gotcha... although if you just hand in the keys your walking from your downpayment and whatever cash you have in it.your sense are correct all these folks singing on massive debt with 5 year calls are taking a certain amount of risk.. just need to look back to 08 09 when no one could refi and all these properties changed hands.. it was not because of poor operators basically it was frozen credit and banks not relenting or walls st.. hedgefund bought said notes from failed banks and refused to rewrite and took the assets.. since they paid pennies on the dollar for the paper.. foreclosing and reselling was still a better play for them..