(Approach - 2) - He says that if he is asked to pull permits, he is not responsible for any additional work that the inspector may throw (basically more money out of my pocket on the rehab costs).

They can have a prepayment penalty and higher out of pocket costs at times as the main drawbacks.

There is/was lot of downside potential to buying before the inspection but I can’t think of any upside. 

What is sensitivity analysis if project cost is 10% higher, it takes 6 more months to build ?

As of now, many potential sites were either identified by broker/developer or too expensive to acquire.

And a lot of start-up companies are migrating to this city as well, because of the efficient costs of living, the OSU campus that has thousands of students graduating and looking for jobs locally, and the availability of land.

That's my 2 cents (which cost me 7k).

**Exit Strategy**: Make sure you have a solid plan to refinance or sell the property before the loan term ends or in case the lender enforces the due-on-sale clause.Being diligent with these aspects will help avoid potential pitfalls in your first Subject To deal.

The sad part is that these poor returns don't even have to do with financing costs which will be an issue in the future this is simply poor performance by inexperienced operators.

Partner Driven was drawn to this Center Rd property due to its strong potential for appreciation with the right renovations.