The seller must give you written notice before starting a forfeiture action, and you would then have 10 days to completely perform your contract obligations, including payment of the full remaining balance of the purchase price.

Owning a lot of SFHs for cash means low levels of risk, but also lower levels of return, since cash locked into a home is only performing at the rate of return for that home, rather than leveraged for maximum return.

Be warned that most QI's are performing safe harbor reverses under rev proc 2000-37.  

He has a good job now, and I hope that he'd stay clean, but when a person is under the influence of drug and alcohol, he's not himself.  

It looks like you're already in Birmingham, so a quick drive around the neighborhood shouldn't be an issue and can save you a lot of headache in the end.If the Calera property adds up without relying on appreciation, and you have already done due diligence on what the rehab consisted of, who's selling it and what their performance metrics are like (tenant turnover, maintenance rate, occupancy etc) then that is the best of your two current options.

:)Cap Rate is a market metric - has nothing to do with performance of the property.

If it's not really performing much above 5.5%, I'm inclined to suggest: Sell it!

The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property.A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.Transaction-Broker: A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties.

3) For a 475,000 performing note at 5% with a 30 year amortization, what would one expect to get?

There can be many factors influencing the buildings value too much to just use a percentage estimation.