What do I do if  I actually have a budget surplus at the end of the rehab, and the lender tries to claim that I defaulted because I didn't perform the required repairs to their standards?

So when trustee gets the funds in.. they go through the lenders title guarantee to see who is owned money . the bank  a  second a lien etc. the money left over is send to the owner of record.. if they cant find the owner of record which happens of course.. then the funds are sent to court in Washington.. and in Oregon I believe they go to some department at the state that handles surplus monies. but reality is if your working this strategy you will call the trustee who handled the sale or Sherriff and give you new address and contract info. 

Set a market rate for the rental, and rents pay into the LP account from which the mortgage and expenses are paid, you set aside x% every month to accrue for future expenses, and after a certain period, pay each investor back something from the "surplus."

I just wanted to see if my numbers are tight and still room for profit even if I needed 2-3 months of holding...262k estimated all in...309,900 estimated list price.... would take 295k2 months holding (3k) = 265kRealtor commission (minimal im the realtor)Closing 9k .... 265k+9k = 274k21k profit quick turnaround...Worst case scenario the HOA allows pets and comes with a parking space so I could rent for about $1900 which covers my fees and should cash flow $400 give or take ...It's an extremely competitive market here in NY with a surplus of buyers and a dwindling supply of homes which makes me think (confident) I can get more after the rehab.. my offer was accepted although another buyer wanted to come in cash after me...

Though it can be done and we can make money, I usually steer them in a better direction that would be more conducive to traditional stick-built construction because modular just wasn't economically feasible for that specific project.I hope to talk about some of those reasons it just wouldn't work as well as why I think in most cases, in most new products, in most regions and in most development situations, modular makes sense all day.First I'm going to start with THEORY pros and cons, than later we will get into APPLICATION pros and cons.TheoryPro #1 - Less waste - With conventional, on-site construction, it is practically pre-calculated in the budget that there will be a surplus of material left over.

In addition the state has a large budget surplus.  

When a property owner leaves the property, they don't always leave empty handed, they collect the surplus bid.  

Every three months we reconcile: if there is a surplus in the utilities budget account, we provide the tenants with the choice of leaving the balance in the account in anticipation of larger bills (i.e. winter) or applying it towards the next month's rent.  

Miami condos are in a huge surplus right now.

Buy some of these dummie surveillance cameras (really cheap from some of these surplus selling mags).