We have some rentals that were flooded in Baton Rouge last weekend and are quickly finding out there is nothing for landlords.

@Dion DePaoli Thank you for your quick answer!

203k is appealing and can make magic happen, but in hot markets (LA in the summer...) the house and the situation of the seller really needs to be a perfect match.In general you don't go find a house to 203k, you go look for any old house, coincidentally find a house that happens to coincidentally be a perfect fit for 203k, and then you start talking about 203k stuff.Typical characteristics:Too crummy for cosmetic flipper types to want.Seller more motivated by sales price than by closing quickly. 

if I only made 15K building a 1200 sq ft house I would be out of business real quick .

Quick question. 

Sellers want to close in front of a notary with no closing costs...there giving me a quick claim deed only.

If its east coast like new York PA New jersey.. the chances of loss ARE GREAT.. because the time it takes to get your collateral back.. this is, as I posted on your other thread one of the things I have seen going on in CF space just making loans all over the country with no clue or thought to the default scenarios and the time it takes to corral your collateral.. by the time you do a 1 to 3 year judicial foreclosure in these states your collateral could be totally trashed.. stick to deed of trust states with quick foreclosure times.

The Rich Dad Series has a bunch to say on this very matter. 

They would like to move quickly from their larger house to a smaller house, and are willing to negotiate.  

A quick call to a knowledgeable attorney or maybe even a licensed mortgage broker may help with the answers.