Now we're in a breach of contract, with only $3,500 deposit at stake on a $333,500 package.Gave an extension of 2 weeks to hammer out some type of deal agreeable to all parties involved.Cut 2 properties from the package ($160,000),  Buyers came back with half-down and Seller agreed to finance the other half for 1 year with guaranteed monthly income.The Buyers will have enough time to finish repairs, get all units occupied, obtain permanent financing, and everyone comes out a winner.Hard to make up 7 months of your life.

Unless you're willing to put a lot down to lower your monthly mortgage to match the existing cash flow, I'm not convinced this is the best way to go for the beginning investor (me).  

If they want, they can basically pay the first month's rent & security deposit, move in, then say, "Yeah, we're never giving you a dime again.  

I have him a $20.00 deposit with the contract that allowed me to market the property.The mortgage was roughly $27,000 and the ARV was close to $60,000.I found a buyer for $35,000 and I just assigned the contract for the difference.I hope to never have to do this again without the ability to close myself.

As far as the earnest money deposit goes, I heard it's better to have it sent to the title company who would do your closing.

Once I felt comfortable enough I secured the property with a deposit and plan to take a day trip to visit it in person and meet the manager. 

It was my first real estate transaction, everyone told me it was a bad idea, one friend begged me to lose my deposit and renege (she is now investing with me :) The only supporter of this purchase was my painter brother, who showed me how to spray paint, so I put on a hazmat suit and primed and painted the walls, ceilings, floors and inside of cabinets. 

Obviously we have been in touch with our lodger who filled us in on the scoop but I was surprised to find very little info on incarcerated California lodgers, does NoLo address this and in either case what are the obligations of the owner(s) who rented to the lodger who is now incarcerated indefinitely as far as security deposit, notification of repossession of rented premises, and the handling of personal belongings? 

It's not a bad gig to have the check direct deposited into your account every month!

Should the check be deposited to an escrow account, and what are the technicalities of doing that.Thank you.Yuri