These scenarios are less of a "risk" to the seller, and more of them being the "read it in a book and gave it a whirl" type person you implied before.

this implies that I do not think that unit is worth moving.  

I didn't want to imply that he was stealing but did want him to account for these buys.

A 40% deduction implies 60% comes from you. 1 extra deal covers a lot of tax.

the shipowner had gone into hiding"Further "concealing" means:keep (something) secret; prevent from being known or noticed.So what I'm implying, not assuming, for anyone reading this conversation is there's no malice if the seller's doesn't know, see or understand what your assignment fee is.Did this provide enough clarity or did I misdefine my intentions?

Even without the cost overrun just mentioned, based on your numbers, you are going into this one with no equity (personally, I wouldn't touch it unless I thought I could go in with at least 15% equity, because at the end, it'll be less anyway).This looks like any other retail deal out there, but with a lot more risk because of the extensive nature of the rehab implied by your estimate.  

I have to agree with @Aaron Gordy , although as @Jordan Moorhead implied, it's true that money can be made in any market in any environment if you do it right.

You don't own the property yet so you can't evict anyone you can only condition your purchase on it (or imply that) to convince the current owner to do so.

Account Closed you imply disparity where none exits.The property is an asset owned by the legal entity.

@Elliot EliasBy choosing a max of 3 draws, this implies that as a flipper, one must have the personal funds to purchase materials for the contractor to hit those milestones, then the investor makes the draw as reimbursement. is that correct as it regards to HMLs.?