Or alternatively if the owner walks away, and the bank decides to sell the NP'ing note ... does the insurance coverage convey with the note since the bank presumably required to be listed as additionally insured on the flood insurance policy (if the property was in the flood zone and one was required)?

There is a new buyer on the property he walked away from, and the new buyer wants to, basically, know why he walked from the deal.

You need to be ready to walk away from the deal if it turns out bad.

Should we walk?

Brett also took afterward to walk the property and give a first-hand assessment.

Would you mind walking me through your process for pulling those records?

You are right that any lender who does 100% financing has to be ready to take the property as the borrowers are more likely to walk away, and they also charge more for that.Actually, the only reason I posted was because I don't think someone should shut the door to an HML if they can still get a profitable project done for these reasons:1.

This is one of the only deals I've seen where cashflow isn't negative. 1968 triplex with 3 car garage on the market for 71 days.Purchase price: $289,900Estimated cost of repairs:  $5000ARV: $335,000 (this is best guess with what comps I was able to dig up)Closing costs: $2500Down pmt: 25% ($72,475)Loan amt: $217,425 amortized over 39 years @ 5% interestUtilities are paid by tenants so I would only have to worry about trash ($84/mo), insurance ($167/mo).Maintanance and repairs: $132.10CapEx: $264.20Vacancy: $132.10Property taxes: $279.67Rental income: $2642.00Cash flow: $415.75Cash on cash ROI: $6.24%I have not walked the property so I can't be certain what the HVAC or roof look like.  

,I'm doing real estate now so one day, I can live walking distance to the beach! 

Walk away from this.