This just sounds like it defeats the whole purpose of having a business entity and the need, both for legal and accounting reasons, for operations to be performed within the business. 

By nature I'm not a systematic thinker, but I know I perform at my highest and enjoy having systems and structure.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

For instance, most of the time my properties have always been much better performers in the maintenance department than the numbers at BP would lead me to believe. 

Here's a look at the numbers outlining the sustaining performance of the property: Monthly rent: $950PM fee: 9%Mortgage amount (taxes/insurance escrowed): $535Reserve for expenses: 15% = $142.50 (a little lower than usual since we took care of all cap ex items in the rehab)Total monthly/annual cash flow: $187/$2,244Annual ROI: 18.13% We had some private investors in on this deal as well, and while we were not able to give them the bonus this time around we still gave a solid 10% guaranteed APR (~3% cash-on-cash over the 3.5 months of this project).

You buy an undervalued house that needs rehab, perform rehab, rent it, refi and repeat. 

Just don't expect it to perform as well as your calculator says.One more piece of advice...if you are investing in C- / D areas and you install air conditioning, make sure you chain the condenser down.

Does your state and contract allow you to sue for specific performance?

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@kai@Kai James There are many options to finance good, performing deals.