You are giving the bank back less value money than you borrowed. 

The remaining $500 is pass through income and I get it back, less income tax, say 22%, and self employment tax, 15.3%.

Our contract stipulates they must deliver within 12 months OR we can get our deposit back (less any custom options we chose, which for us amount to ~$70K).

., yep, I agree that in that other thread, the reason the OP got all their money back (less closing costs) was because it didn't need any repairs.

Like I said I only get back less than 10% of properties from notes I buy so it’s an ancillary side of the business.

If it allows you to withdraw without jeopardizing your deposit within a set time and you still can, then do so.If your walkthrough found something off but you still want to buy, see if the inspection offers some opportunity for negotiation and use that.If the appraisal comes back less than asking, a lower price may be required to get financing.And until you have the experience, don't offer on properties sight unseen unless you really want to face the challenge.

For example, maybe the appraisal came back less than the offer price and the bank won't lend on it.

Ben Wilkins Andrew Postell Do you guys think it would be possible for him to have the seller carry back less of the sale amount, maybe 20% of the cost, and take out a loan for the remainder.

Raise it to 700 * 70%, you get 490k back less 440k go to bank, less other costs.

I'm gonna get back less than I wanted but all in all I am content with this as my first house considering the condition of the house when i bought it ( lots of my family and friends believed it was a bad idea, but considering most of them don't even own personal properly, that's how I knew I was going in the right direction)... the foundation, kitchen, bathroom, bedrooms, everything were redone. okay so, there's the backstory of the whole project but I wanted to focus specifically on one big mistake I made through the process: paying a contractor too early.so I hired a gc for the major project, but in order to save a little bit I went with a less expensive plumber to do the bathroom.