Here are some thoughts on it :20% down on the sum of purchase price plus rehab dollars30 year term loan with rates around 5% No prepayment penalty – can flip anytime you want once construction is done and fully inspected by our construction consultantRehab funds controlled by the borrower – no funds ever given direct to a contractorSeller can pay up to 2% of the buyers purchase price as a credit against closing costsLender can increase the rate to offer more cash to pay buyers closing costs so they drop to zero – if flipping the rate doesn’t matter if only making 5 or 6 paymentsYou must use a GC that has to be checked out by the lender and the project approved by the construction consultant – you can do painting or demo but that’s it unless licensed in a tradeBest feature is loan is based on the ARV of the house, not what you paid for it

they don't see a big dumpster full of demo junk and figure out there's a rehab going on, since the flipper took out a regular homeowners policy and ignored the fine print saying they won't cover you if you're doing a major rehab for profit on this place!

I didn't let them see it though till demo was completed.

But still crazy early nonetheless ;-)As for the rehab, we have just completed the demo and foundation work.

They have a demo auction but it seems they need all financial info and deposit.

My recommendation to them: Spend 12k to demo the building and basically give away the lot to avoid the 30k lien the city would put on it to tear it down + taxes + fines + building violations which would attach to other properties they own. 

ALSO... for some of these properties... if the homes don't get raised and can't meet new requirement and get demoed the land can become green space making it no longer able to be built on.

If you can build a site and have it SEO'd for your location and target demo is IDEAL.

last one I did in Lake Oswego cost me 65k to take everything to the dump and demo the little house.. over 250,000 lbs of crap.. or prized possessions which ever you  slant you take.this one had 18 dead casts in it.. 

Yeah Monica the risk isn't worth the reward unless you could demo this property and put a higher and best use on it or build up to a higher density.The seller wants you to take the risk paying for a 3 unit income stream when that could go away at any second.I would value conservatively at a 2 unit income stream and include any conversion costs to bring it into compliance.