How do we protect both parties while ensuring there are methods to handle risks and unknowns?  

He has recommended 2 unknown contractors who I have contacted but have not provided references or a track record yet.

Some of the expenses I know that I should consider are Capital expenses@10% as the last roof replacement is unknown (property built in 1980s), Repair expenses@ 5%.

For some unknown reason, the industry standard in turnkey is to provide front-page ROI calcs (like what you see on websites to entice you) that don't include important expenses like maintenance and vacancy.

A lot more emotions are attached to that one and so many unknowns.

The program forces that hit into the immediate future, whereas I would have taken it in some unknown point it time. 

Hey everyone,This post is related to my other post about a house on Hubzu that is across from my parents' current home.From everything my parents and I can gather, it seems that this house is unoccupied during the day...

I did consider a fix-flip, but again, the unknowns are enough there that I'm not sure there would be any meat left afterwards.I would add the caveat that I don't have a lot of experience myself, so if you are confident you can handle the issues, don't let my aversion deter you.

You need this property at 60k'ish.For this to be you're first wholesale deal I would pass, to much unknown. 

What can happen easily is that some "investor" dreams up some method or deal he can sell to a distressed owner and they end up out smarting themselves when the deal unwinds because of some unknown or unforeseen event.From the stand point of building equity, relying on appreciation, and usually cash flow from a rental, you're better off paying a lower but market rate interest and discounting the price. :)