I guarantee you can tell me what areas are good and bad based on where you live right?

@Yanling Wu, the Hedge Funds have more money than they know what to do with so they try to just house their funds in anything with a guaranteed return, even if it's only 0.25%.

The important points often glossed over are (1) is the buyer providing their personal guarantee to the seller for the note (2) is the seller maintaining a wrap position so they can foreclose in the event of default and gain ownership (3) is the buyer putting up additional collateral (4) how large is the down payment (5) what is the LTV (6) is this a personal residence for the seller or investment property (7) will the property cash flow and if so what will the cash flow be (8) is the property in a increasing, declining, or stabilized area (9) is the property being sold at market value, or above market value because of the low interest rate of the existing mortgage and (10) how experienced and what is the track record of the buyer, and is the buyer purchasing a property for investment or to live in or otherwise use.  

I guarantee if there is litigation the Sponsor is going to get named personally. 

I know it may cost up, but they will be able to add the proper verbiage/guarantees/escalations/protections that you may miss, and they will market it for you as well.The you have this lease available for you to use in the future.Gino

However, the seller may guarantee the title themselves depending on the type of deed they provide

@Clay TeegardenAmongst the avalanche of nearly identical responses from my fellow accountants about setting money aside and rates and so on, I will repeat a point that I consider crucial:There is no guarantee that you will have any taxable profit when you start flipping.

Hello @Vinay Sanapala,I recommend listening to the excellent comments from: @James Wise, @Drew Sygit, @Jay Hinrichs, and @Mark Cruse.I regularly read people claiming that Section 8 is free money and guaranteed.

Using a whole life policy to secure a line of credit can be a powerful tool, especially since you’re leveraging a guaranteed asset.

It's no guarantee but it's a good place to start.