JD made some solid points on structuring the agreement etc. 

Publication 336 (cash method section) gives a clear example very similar to the situation described where constructive receipt was made because the agent of the taxpayer received payment for the taxpayer. 

Budget these carefully into your overall project plan to avoid surprises.Rehab Budget: Ensure that bids are received from multiple contractors and that adequate reserves are made for cost overruns.ARV: Be conservative on your ARV since the appraisal concerns one person’s opinion.

Also not all deals on FB are bad deals - they just need to be vetted like every other deal.Note: This post is being made based on my opinion and I was not under duress or a threat of lawsuit.  

I really Don't have anything to say new since I made this post.

I need to source the data myself, run the numbers, check the calculations, eventually build my own custom spreadsheet etc. 

I agree with everything said in this post, it is a hospitality business and superlative customer service is a must. 

I don't know how to post documents to my profile yet or if that's a thing but I just made a 4 page ASR package based off of another site.

What made you interested in investing in this type of deal?

Purchase price: $850,000 Cash invested: $500,000 Sale price: $2,250,000 Purchased , knocked down, built new from ground up What made you interested in investing in this type of deal?