Other investors may have mixed feelings about that, however I think those two two paths are going to follow different procedures.

Price for seller is ARV less private lender loan for rehab less private lender interest less 10% costs to sell (commissions + closing costs + wiggle room)2. create a note for equity, moratorium for 4 months on payments3) if existing financing, buy sub2Ex) 200K house, $20K rehab, $20K private lender loan for 4 months, $2K private lender interest, $20K JV fee, $20K costs to sell with agent and closing costs, free and clear - no mortgage houseBuy it, get on title, fix it, list it, resell it, pay off notes$200K - $20K - $20K - $2K - $20K = 138K to seller Net`````````````````Compare w Wholesaling formula.7 x 200K = $140K - $20K rehab - = $120K - $5K wholesaling fee = $115K to Seller Net"Watch the crowd, go in the opposite direction""You always find the finest fishing holes where the average fisherman is afraid to go."

It refers to procedural complications arising from just about anything we try to do, it seems.Merriam-Webster (dictionary) says it this way: "Full Definition of red tape. : official routine or procedure marked by excessive complexity which results in delay or inaction."

The bank will have to start over their procedures as far as appraisal and pricing My guess is there is more to this than the judgement as it should not survive a foreclosure.  

You have more options than you think.Worst house, in the best financially viable for you neighborhood, with enough left over each month to do some minor cosmetic procedures.2 years later, you can sell, cash out, get busy on the next place and an investment property.Or go for a small multi-family (4 units or less).  

I'm not referring to formal audit procedure specifically.

thanks @Bill Exeter, really good to know foreign investor can do 1031 exchange if they follow the procedure.

I am not 100% on the procedures, but I do believe that you have to live in and be able to prove that you have done so for 2 years, improve and maintain the property and take necessary steps to notify the last known owners.

Our standard operating procedure is to buy and rehab for less than a property is worth in order to refinance our money out and continue to grow.

Moving forward though, I would like to implement more comprehensive screening procedures.