So we followed orders, I unintentionally ended up leaving my JansPort backpack inside of my friends vehicle in the passengers side which i always hold my wallet and other necessities that i refuse to fill up my pockets with to prevent overloaded pockets, so while we are standing in front of the cop car, the officer walked over to where I was (passengers side) of the vehicle searched and raised his hand in the air and said "Look what I found in the black Jan-Sport, a piece of marijuana" and I automatically rejected to the fact and said "thats impossible officer I have not had possession nor smoked marijuana in months if not longer and theres just no possible way you could of found that in there.

You stated you have utilized an encapsulating paint and a signed disclosure as long you have proof of those items then you should be fine from a liability perspective in my opinion.

What if you are the seller and the buyer goes and spooks the tenants, for example talking about increasing rent or switching utilities to the tenants.

Lenders understand the diversity of risk amongst the utility or real property for primary, secondary and investment purposes.

I assume there are utilities to the property, and sewer lines to the property?

,Just as Bill Exeter said, you CANNOT utilize a 1031 on a FLIP.

Its not good time utilization pandering what they'll pay per month in expenses, fees and whatnot or even worse what their end buyer will want or have to pay per month etc.

It is:Gross rents x 50% = Cash Flow before debt service (the 50% includes taxes, insurance, property management, utilities paid for by owner, maintenance, vacancies, etc).Once you have that number, subtract your debt service payment (principal and interest), and you will have the cash flow.Without the actual rents or your loan details, it's hard to provide an accurate example.

Also, read the Ultimate Beginner's Guide, it will give you an idea of how you can get started.Once you have been around and utilized the resources here, you can start formulating a plan.Good luck and let us know how you can help!

You are counting reserves and utility deposits as an expense.