How safe is property won from a Surplus auction (city vs state vs federal)?

There's definitely a surplus of realtors here in Richmond and the surrounding areas, so you won't have trouble finding one.

Eventually the pref goes away as capital is returned and the investors continue to receive 70% of the surplus cash flow until the property is sold.

For example let’s say you have $25k and a $500 a month surplus in your budget.

Current room count is 7 on Airbnb, income is about $5000, overhead is 2k of that and I live on less than a $1000 per month so there is a 2K surplus after overhead. 

If it is not sufficient, owner and general contractor has to make a request to tap into the contigency fund or any surplus from other line items on the cost breakdown.If you don’t think you can fulfill these requirements from your lender (s), bring it up and discuss with them before the construction has started.

Below is breakdown:BRRRR Results will be final after I refi at end of month but plugged in initial locked in quote from lender now just need to negotiate closing costs with title company.Monthly Income:$1,425.00 Monthly Expenses:$1,172.23 Monthly Cashflow:$252.77 Pro Forma Cap Rate:6.06% NOI:$10,607.50 Time to Refinance:2 Months Cash on Cash ROI:36.69% Purchase Cap Rate:10.30% Vacancy:$78.38Repairs:$49.88CapEx:$49.88Insurance:$100.00Management:$71.25P&I:$631.19Property Taxes:$191.67Purchase Closing Costs:$3,605.00Estimated Repairs:$10,338.00Total Project Cost:$116,943.00After Repair Value:$175,000.00 Acquisition:Down Payment:$0 ($10750 surplus)Loan Amount:$113,750.00Loan Points/Fees:$4,823.00 Loan Interest Rate:14.000%Monthly Interest:$1,327.08Total Cash Needed At Purchase:$8,016.00 Refinance:Loan Amount:$121,000.00Loan Fees:$7,500.00 Amortized Over:30 years Loan Interest Rate:4.750% Monthly P&I:$631.19 Total Cash Invested:$8,266.00 Purchase Price:$103,000.00All is right in the world. 

@Bob Bowling   If this was the case you would have the state of CA selling surplus properties all over the place and I have never really seen that..

Also, check and see if you have any Builders Surplus places, etc.

We have access to a lot of contractor surplus auctions so we do well.BUT I also have a 30x40 two story barn for storage.For granite counter tops I approach the fabricators for their remnants.For flooring we have a small local privately owned company that we developed a relationship with & he gives us great deals.In fact we sold one of our properties to a contractor he works with.I am with you on the plumbing supply stores.