A real estate attorney will draft everything, so once this starts, should my DD go deeper than an appraisal?

Digger deeper, I need to assemble a team and it starts here. 

I do totally agree though I am definitely willing to use the option period to dig deeper.

I’m in Minneapolis and housing prices keep increasing. so do I wait it out for the so called market crash that might not happen for the next 10 years or dive in? 

The long play takes deeper pockets to let it play out...... if you can do that, then you can still make $$ in the bay area...

I'm sure you will come across more questions as you take a deeper dive into these questions.

Trying to reconcile this with the losses is interesting:Perhaps needing to deploy that much capital in such a short period drove local rehabbers to make poor choices, like diving into a bunch of high-end flips or larger houses that are harder to do correctly and harder to sell.If Zillow hired lower tier rehabbers who weren't accustomed to those higher end projects, it's easy to understand how rehabbers got in over their heads.

And some will dive.  

I greatly appreciate it and plan on diving into @David Pere information.

You need to get deeper into the numbers.